The National Banking and Securities Commission of Honduras (CNBS) has issued a resolution prohibiting the country’s financial institutions from engaging with cryptocurrencies. This move is motivated by concerns regarding the lack of regulation and associated risks posed by crypto assets.
The CNBS resolution highlights the lack of regulation surrounding cryptocurrencies, making them unsuitable for handling by financial institutions. The Honduran central bank cannot guarantee crypto transactions due to this absence of regulation.
The resolution emphasizes the risks associated with cryptocurrencies, including fraud, money laundering, and financing terrorism. It suggests that users and financial institutions may be exposed to operational and legal risks.
Financial institutions supervised by the CNBS are barred from maintaining, investing, or operating with cryptocurrencies, virtual currencies, tokens, or similar virtual assets. Additionally, holding derivative instruments based on crypto assets is prohibited.
The resolution mandates the inclusion of information about the risks associated with crypto assets in financial education programs. This aims to raise awareness among users and institutions about the potential dangers of dealing with cryptocurrencies.
While financial institutions are prohibited from handling cryptocurrencies, crypto exchanges continue to operate freely in Honduras. This indicates a divergence in regulatory approaches between different sectors of the financial industry.
The CNBS’s resolution reflects Honduras’ cautious approach towards cryptocurrencies, driven by concerns about their unregulated nature and associated risks. By prohibiting financial institutions from engaging with cryptocurrencies, the resolution aims to mitigate potential threats to financial stability and safeguard users from fraud and other illicit activities. However, the continued operation of crypto exchanges suggests a complex regulatory landscape where different actors navigate varying degrees of oversight and control.
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