Honduras bans regulatory institutions from crypto trading
Honduras' banking regulator, the National Banking and Securities Commission, or CNBS, has announced an immediate ban on institutions from trading cryptocurrencies.
The banking regulator reached its decision on Monday and cited fraud and money laundering as reasons for the move, Reuters reported.
The National Bank and Securities Commission of Honduras, or CNBS, has banned institutions under its supervision from trading cryptocurrencies.
The banking regulator announced the measure this week, Reuters reported on Friday.
According to the report, the CNBS decision, effective immediately, cites the Central American country's use of virtual assets for fraud and money laundering as key risks and reasons for the ban.
In this case, any institution regulated by the regulator may not hold, mediate, trade or invest in crypto tokens or similar unauthorized digital assets.
Crypto fraud and money laundering
Noting that there are several crypto platforms offering services in the country, Honduras does not regulate these entities. As they are largely located in different parts of the world, Honduran law does not regulate their activities, and there is a risk that such companies are involved in fraud, money laundering and the financing of terrorism.
The regulator reached a decision on Monday, February 12, to ban all institutions under its supervision from crypto trading, Reuters reported. However, the move was only announced on February 16.
The move comes in the wake of global strengthening of crypto regulation, with governments collaborating with international bodies such as the FATF to help streamline rules for the sector.
But in particular, Honduras' Prospera Zone – the Prospera Zone for Employment and Economic Development (ZEDE) – officially Recognize Bitcoin At the beginning of this year as a unit of account. In the year In July 2022, a group formed from Blockchain Honduras, Coincaex crypto exchange and the University of Technology of Honduras. In “Bitcoin Valley” was announced Municipality of Santa Lucia, Honduras.
