The National Banking and Securities Commission of Honduras (CNBS) has issued a resolution that forbids financial institutions in the country from engaging in cryptocurrency transactions. According to the CNBS, the Honduran central bank cannot ensure the security of crypto transactions due to the lack of regulations.
The resolution emphasizes that users of cryptocurrencies and financial services based on blockchain technology may face risks such as fraud, operational issues, and legal complications. It states that there is no guarantee that these cryptocurrencies will continue to be accepted as a means of payment, as people are not legally obligated to recognize them.
Furthermore, the resolution highlights the potential misuse of unregulated crypto assets for fraudulent activities, money laundering, and financing terrorism. In light of these concerns, the CNBS has also prohibited supervised institutions from holding derivative instruments based on crypto assets. Additionally, the resolution calls for the inclusion of information about the risks associated with crypto assets in financial education programs. It’s worth noting that crypto exchanges are still allowed to operate freely in Honduras.
The CNBS is a part of the Honduran presidential administration, and the resolution was unanimously approved on February 12th, 2022, with immediate effect. This action follows a previous warning issued by the Honduran central bank in March 2022 regarding the use of cryptocurrencies. The central bank had also expressed interest in exploring the possibility of issuing a central bank digital currency.
Despite the restrictions, Bitcoin has gained some traction in Honduras. The country is home to Bitcoin Valley, which opened in the summer of 2022, aiming to attract tourists who can make payments in Bitcoin, US dollars, or the Honduran lempira. Additionally, Honduras is the location of Próspera, a city in a special economic zone on the island of Roatan, where Bitcoin was made legal tender in 2022 and recognized as a unit of accounting in January. The impact of the CNBS resolution on these areas is currently unclear.
In related news, proposed cryptocurrency regulations in the United States have been fueled by lawmakers’ fears and doubts.