The National Banking and Securities Commission of Honduras (CNBS) has issued a resolution that prohibits financial institutions in the country from engaging in transactions involving cryptocurrencies. The Central Bank of Honduras cited the lack of regulation as a key reason for this decision, stating that crypto transactions cannot be guaranteed.
According to the resolution, users of cryptocurrencies and blockchain-based financial services are exposed to various risks, including fraud, operational issues, and legal uncertainties. The resolution emphasizes the absence of legal obligations to recognize cryptocurrencies as valid means of payment, which could lead to their acceptance being revoked at any time.
Additionally, due to their unregulated nature, crypto assets are vulnerable to misuse for illicit activities such as fraud, money laundering, and terrorist financing. As a result, the CNBS has mandated that regulated institutions refrain from maintaining, investing in, or facilitating transactions involving cryptocurrencies or similar virtual assets.
Furthermore, the resolution prohibits regulators from holding derivatives linked to crypto assets and calls for the inclusion of information on the risks associated with crypto assets in financial education programs. Despite these regulatory measures, cryptocurrency exchanges continue to operate freely in Honduras.
The resolution, issued on February 12 and published on February 15, comes amidst previous warnings from the Central Bank of Honduras regarding the risks associated with cryptocurrencies. While Honduras has seen some adoption of Bitcoin, particularly in areas like Bitcoin Valley and the special economic zone city of Prospela, it remains uncertain how this resolution will impact these initiatives.
