This article briefly:
•Honduras CNBS has imposed a ban on cryptocurrency trading activities for financial institutions within its jurisdiction.
•CNBS explained that the ban is to maintain strict control over the integrity of the country’s financial system.
•The move contrasts with growing institutional interest globally, such as the launch of a Bitcoin ETF in the United States.
While several countries around the world are opening their borders to cryptocurrency trading, Honduran regulators have taken decisive steps to curb these activities within their jurisdiction.
The National Banking and Securities Commission of Honduras (CNBS) issued a ban prohibiting financial institutions in the country from engaging in cryptocurrency trading or holding digital assets.
Why Honduras Bans Cryptocurrency Trading
The regulatory environment in Honduras currently lacks provisions specific to crypto-assets. This lack creates risks for users, making them vulnerable to fraud, operational traps, and legal uncertainty. In addition, there are growing concerns that these assets may be used for illegal activities such as money laundering and terrorist financing.
CNBS further cited concerns about the decentralized nature of many crypto-related businesses operating within the country, which are often registered in jurisdictions other than Honduras. This decentralization creates regulatory challenges and can lead to unmonitored activity.
“In the absence of specific provisions in Honduran legislation for cryptocurrencies, virtual currencies or any financial services based on blockchain technology, financial consumers of these virtual assets are exposed to fraud, operational and legal risks due to their use,” the regulator said. Including that their acceptance may cease at any time, as people are not legally obliged to conduct transactions or recognize them as a means of payment.”
Therefore, the CNBS Directive expressly prohibits Honduran financial entities from having any association with crypto-assets, virtual currencies, tokens or similar digital assets that are not authorized by the Central Bank of Honduras. CNBS emphasized the need to maintain strict controls on financial activities to safeguard the integrity of the country’s financial sector.
Honduras’ ban on cryptocurrencies comes as institutional interest in the sector is booming with the launch of several Bitcoin exchange-traded funds (ETFs) in the United States.
Several U.S. banking groups are urging the U.S. Securities and Exchange Commission (SEC) to reassess a rule that makes it costly for them to provide custody services for these ETFs, Bloomberg analyst Eric Balchunas said.
Balchunas said, “Bank of America has given up on a key role for Bitcoin ETFs and is pushing the SEC to adjust guidance on holding digital assets. A coalition of bank trade general partners sent a letter to the SEC asking them to exclude ETFs from the broad cryptocurrency umbrella. Outside. They want a piece of the pie. I don’t blame them, it’s not fair.”
Meanwhile, Bitwise chief investment officer Matt Hougan emphasized that the request reflects how a Bitcoin ETF has changed “the tone in Washington around cryptocurrency regulation.”
Investment vehicles holding Bitcoin currently hold more than 955,000 BTC, estimated to be worth nearly $50 billion, according to data from ByteTree. Apart from the United States, other jurisdictions such as Hong Kong are opening up their regions to allow cryptocurrency trading activities to flourish. #洪都拉斯 #加密货币禁令