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Honduran financial regulator bans banks from trading cryptocurrencies
Honduran financial regulator bans banks from trading cryptocurrencies
The Honduran financial system has put the brakes on cryptocurrencies, with the National Banking and Securities Commission (CNBS) to forbid institutions under its supervision to manage digital assets.
The CNBS stated that “the maintenance, investment, intermediation or exploitation of cryptocurrencies, cryptographic assets, virtual currencies, tokens or any other similar virtual asset” will not be permitted for financial institutions in the country.
Citing the unregulated nature of cryptocurrencies and their potential exposure to fraud, money laundering and terrorist financing, the CNBS resolution effectively prohibits banks, investment companies and other financial institutions from engage in activities related to cryptocurrencies, including holding, investing or facilitating transactions. .
Honduras is home to several crypto-friendly initiatives, including Bitcoin Valley and the Próspera Special Economic Zone, where Bitcoin serves as legal tender. However, Honduras’ central bank had previously warned against the use of crypto and is exploring issuing its own digital currency. While crypto exchanges continue to operate freely in Honduras, traditional financial institutions are now prohibited from entering the digital asset space.