While the popularity and usage of Bitcoin and cryptocurrencies continues to increase, good news is coming from countries about BTC and cryptocurrencies.
However, some countries also choose to impose bans.
One of these countries was El Salvador's neighbor Honduras, which accepted Bitcoin as legal currency.
According to a recent report from Reuters, Honduras has banned cryptocurrency transactions in certain areas.
The Honduran National Banking and Securities Commission (CNBS) has put the brakes on cryptocurrencies, banning institutions under its control from dealing in digital assets.
This decision by CNBS prohibits institutions under its control from “maintaining, investing, brokering or trading cryptocurrencies, cryptoassets, virtual currencies, tokens or similar virtual assets not issued or authorized by the central bank.”
CNBS noted that Honduran law currently regulates cryptocurrencies, but the platforms on which they are traded operate in the country.
At this point, CNBS said that since many of these platforms are located in more than one jurisdiction, Honduran law cannot control them and investors run the risk of being “immersed in fraud, money laundering and terrorist financing activities.”
Although Honduras does not regulate Bitcoin and cryptocurrencies and has already banned some transactions, the financially autonomous Honduran island of Prospera accepted Bitcoin as legal currency within its borders in 2022.
*This is not investment advice.