Honduras Bans Financial Institutions from Crypto Transactions

Liputan6.com, Jakarta Honduras' financial system has banned cryptocurrencies, with the National Banking and Securities Commission (CNBS) prohibiting institutions under its supervision from dealing in digital assets.

Reporting from Yahoo Finance, Tuesday (20/2/2024), CNBS has stated that maintaining, investing, mediating, or operating cryptocurrencies, crypto assets, virtual currencies, tokens, or other similar virtual assets will not be permitted for state financial institutions the.

Citing the unregulated nature of cryptocurrencies and potential exposure to fraud, money laundering, and terrorism financing, the CNBS resolution effectively prohibits banks, investment firms, and other financial institutions from engaging in any cryptocurrency-related activities, including holding, investing, or facilitate transactions. .

Honduras is home to several crypto-friendly initiatives, including Bitcoin Valley and the special economic zone Próspera, where Bitcoin serves as legal tender.

Central Bank Warning

However, Honduras' central bank has previously warned against using crypto and is studying issuing its own digital currency. While crypto exchanges continue to operate freely in Honduras, mainstream financial institutions are now prohibited from entering the digital asset space.

This latest information is quite surprising because previously, Prospera, a special economic zone in Roatan, Honduras, in January 2024 officially recognized Bitcoin (BTC) as a unit of account, allowing it to be used to measure the market value of goods and services.

Prospera ZEDE (Zone for Employment and Economic Development) acting manager and tax commissioner Jorge Colindres is leading the initiative. Colindres said the decision was taken to provide more financial freedom to individuals and businesses operating in the region.

“At Prospera ZEDE we believe in the right to financial freedom and monetary freedom. People should be free to make transactions, do bookkeeping and report taxes in the currency of their choice,” Colindres said on Twitter at the time.