Honduran regulator halts cryptocurrency trading

Honduras’ financial watchdog, CNBS, has banned cryptocurrency trading in the country. The National Banking and Securities Commission, citing worries about fraud and money laundering.

The resolution specifically instructs institutions under its supervision to steer clear of activities involving “cryptocurrencies, crypto-assets, virtual currencies, tokens, or any similar virtual assets not issued or authorized by the central bank.”

Honduran laws currently lack specific regulations for crypto assets, even though there are platforms operating within the country. The regulator highlights the challenge of controlling these platforms, often based in various jurisdictions, posing a risk of “activities of fraud, money laundering, and terrorist financing.”

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The central bank of Honduras, which is not responsible for guaranteeing such transactions, had previously mentioned exploring the technical and legal feasibility of launching its own digital currency back in March 2022. However, no decision has been communicated.

In April 2022, Honduras Prospera, a unique resort town with administrative autonomy, announced its acceptance of Bitcoin as legal tender within its borders. The impact of the new regulatory policy on this adoption is currently uncertain.