Honduras pushes back on crypto revolution with trading ban

AUTHORITIES in Honduras have slapped a ban on institutional trading and investment in cryptocurrencies.

The surprise legislation comes into immediate effect, the country's National Banking and Securities Commission has ruled.

According to a statement, it is now against the law for any institution under NBSC supervision to "maintain, invest, intermediate or trade in cyptocurrencies, crypto-assets, virtual currencies, tokens, or any similar virtual assets not issued or authorised by the central bank".

Although digital assets are not regulated in Honduras, the Central America republic is home to several crypto platforms.

The legislator recognised its laws could not control the platforms as they are not exclusively domiciled in Honduras - something the government believes risks "lending themselves to activities of fraud, money laundering and terrorist financing".

Ironically, Honduras shares a border with El Salvador - the world's first country to adopt Bitcoin as legal tender in 2021. It's also home to a resort town called 'Honduras Prosper' which was granted fiscal autonomy two years ago and accepts Bitcoin in day-to-day transactions.

It was not immediately clear how it would be affected by the new policy.

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