Honduras’ financial regulatory authority has prohibited the nation’s banks and financial institutions from engaging in transactions involving cryptocurrencies and similar virtual assets.
This decision, outlined in a recently announced resolution, is primarily due to concerns over potential fraud and money laundering risks.
The National Banking and Securities Commission declared that the resolution, which was initially issued on Monday and disclosed on Friday, is to be enforced immediately.
It specifically forbids regulated entities from engaging in activities such as holding, investing, intermediating, or trading in cryptocurrencies, crypto-assets, virtual currencies, tokens, or any similar virtual assets not sanctioned by the central bank.
While Honduran legislation does not currently provide a framework for regulating crypto assets, various platforms that trade in these assets are operational within the country.
The regulatory body highlighted the challenge of overseeing these platforms, many of which are based in different jurisdictions. This lack of regulatory control raises concerns about their potential involvement in fraudulent activities, money laundering, and financing of terrorism.
