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Honduras

Retail_Trading_Status

Gray-Zone Unknown
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Analysis ID
#325
Version
Archived
Created
2025-06-26 09:22
Workflow Stage
Initial Research

Executive Summary

Retail cryptocurrency trading in Honduras exists in a gray zone; it's not explicitly illegal for individuals, but lacks regulatory support. The Central Bank of Honduras (BCH) does not recognize cryptocurrencies as legal tender and has issued warnings about their risks. The National Banking and Insurance Commission (CNBS) prohibits supervised financial institutions from engaging in crypto-related activities. Individuals engage in P2P trading, often through offshore exchanges, highlighting a regulatory vacuum concerning consumer protection.

Key Pillars

The primary regulator is the Central Bank of Honduras (BCH), which does not recognize cryptocurrencies as legal tender and warns about their risks. The National Banking and Insurance Commission (CNBS) prohibits financial institutions from engaging in crypto activities. There are AML rules enforced by the FIU for large cash transactions related to crypto, but no specific licensing or registration requirements for individuals trading crypto.

Landmark Laws

Resolution 069/09-02-2024 (also cited as Resolution 003/2024): Issued by the CNBS in February 2024, this resolution prohibits supervised financial institutions from holding, investing, brokering, or trading cryptocurrencies or similar virtual assets not issued or authorized by the BCH and from allowing their platforms to be used for such operations.

Considerations

Cryptocurrencies are treated as financial assets without legal tender status. Realized crypto gains are reportedly treated as 'other income' subject to taxation. The Central Bank of Honduras (BCH) has issued warnings about the volatility and potential use of crypto in illicit activities. Individuals bear sole responsibility for crypto transactions, without backing or protection from Honduran financial authorities.

Notes

Próspera, a special economic zone, adopted Bitcoin as legal tender within its jurisdiction in April 2022, operating independently of the national financial system. Initiatives like 'Bitcoin Valley' in Santa Lucia showcase informal adoption. Officials are reportedly drafting a FinTech bill to license Virtual Asset Service Providers (VASPs) and impose a cybersecurity levy, with public consultation expected in late 2025. The BCH is also studying the feasibility of a retail Central Bank Digital Currency (CBDC), with a potential pilot launch in 2026.

Detailed Explanation

The retail cryptocurrency trading status in Honduras is characterized as a 'Gray-Zone'. While no explicit laws prohibit individuals from buying, selling, or holding cryptocurrencies, the regulatory landscape is defined by the absence of specific crypto legislation and strong warnings from the Central Bank of Honduras (BCH). The BCH, as the sole issuer of legal tender (the Lempira), has consistently stated that cryptocurrencies are not legal tender and are not regulated or backed by the Honduran government. Since 2018, the BCH has issued multiple communiqués warning the public about the risks associated with cryptocurrencies, emphasizing that any transaction with virtual assets is the sole responsibility of the individual. The National Banking and Insurance Commission (CNBS) has taken a more restrictive approach towards financial institutions. In February 2024, CNBS Resolution 069/09-02-2024 (also noted as Resolution 003/2024) explicitly prohibits supervised financial institutions (banks, insurers, etc.) from holding, investing, brokering, or trading in cryptocurrencies, crypto-assets, virtual currencies, tokens, or any similar virtual asset not issued or authorized by the BCH. These institutions are also barred from allowing their platforms to be used for crypto operations, citing risks of fraud, money laundering, and terrorist financing. Despite these prohibitions on financial institutions, individuals can still own or trade cryptocurrencies. Peer-to-peer trading occurs through offshore exchanges and OTC groups on platforms like Telegram and WhatsApp. This activity happens without consumer protection, and there is no deposit guarantee for crypto holdings. The Financial Intelligence Unit (FIU) enforces AML rules, requiring suspicious activity reports for crypto-related cash transactions above approximately US $10,000. Realized crypto gains are reportedly taxed as 'other income'. Future regulation is possible, with officials reportedly drafting a FinTech bill that could license VASPs and impose a cybersecurity levy on large crypto-to-fiat conversions, with public consultation anticipated in late 2025. The CNBS is reportedly considering a temporary ban on paid advertising for unlicensed crypto platforms. The BCH is also exploring a retail CBDC, with a potential pilot in 2026. The existence of Próspera, a special economic zone that adopted Bitcoin as legal tender in April 2022, and initiatives like 'Bitcoin Valley' highlight informal adoption. Consortium Legal noted on April 4, 2025, that although cryptocurrencies are not prohibited for the public, their use and commercialization are carried out at the responsibility and risk of individuals, without the backing or protection of the Honduran financial authorities.

Summary Points

Retail Cryptocurrency Trading Status in Honduras: June 2025

Overall Status: Gray-Zone - Retail cryptocurrency trading is neither explicitly legal nor illegal, existing in an unregulated space.

1. Regulatory Bodies and Roles:

  • Central Bank of Honduras (BCH):
    • Sole issuer of legal tender (Lempira).
    • Has consistently stated cryptocurrencies are not legal tender.
    • Issues warnings about the risks of cryptocurrencies (volatility, illicit activities).
    • Studying the feasibility of a retail Central Bank Digital Currency (CBDC) with a potential pilot in 2026.
  • National Banking and Insurance Commission (CNBS):
    • Supervises financial institutions.
    • Prohibits supervised financial institutions from holding, investing, brokering, or trading cryptocurrencies.
    • Cites risks of fraud, money laundering, and terrorist financing as reasons for the prohibition.
    • Reportedly debating a temporary ban on paid advertising for unlicensed crypto platforms.
  • Financial Intelligence Unit (FIU):
    • Enforces Anti-Money Laundering (AML) rules.
    • Mandates suspicious activity reports for crypto-related cash transactions above approximately US $10,000.
  • Secretariat of Finance:
    • Reportedly drafting a FinTech bill that could license Virtual Asset Service Providers (VASPs).
    • The bill may impose a cybersecurity levy on large crypto-to-fiat conversions.
    • Public consultation on the bill is anticipated in late 2025.

2. Key Legislation and Regulations:

  • No specific crypto-focused legislation exists.
  • CNBS Resolution 069/09-02-2024 (also cited as Resolution 003/2024): Prohibits supervised financial institutions from engaging in cryptocurrency activities.
  • FinTech Bill (Draft): Under development, potentially licensing VASPs and imposing a cybersecurity levy. (Expected late 2025)

3. Requirements for Compliance:

  • For Individuals: No specific legal requirements for owning or trading cryptocurrencies.
  • For Financial Institutions: Strict prohibition on involvement in cryptocurrency activities (CNBS Resolution 069/09-02-2024).
  • AML Compliance: Crypto-related cash transactions above approximately US $10,000 are subject to suspicious activity reporting requirements by the FIU.

4. Restrictions and Limitations:

  • Financial institutions are prohibited from dealing with or facilitating cryptocurrency transactions.
  • No legal protection or recourse for individuals engaging in crypto activities.
  • No deposit guarantee for crypto holdings.
  • Strong warnings from financial authorities about the risks of cryptocurrencies.

5. Recent Developments and Changes:

  • February 2024: CNBS issued Resolution 069/09-02-2024 prohibiting financial institutions from engaging in cryptocurrency activities.
  • Late 2025 (Anticipated): Public consultation on a FinTech bill that could license VASPs.
  • Ongoing: BCH studying the feasibility of a retail CBDC.

6. Notable Points:

  • Peer-to-peer trading occurs outside the formal banking system.
  • Realized crypto gains are reportedly treated as "other income" subject to taxation.
  • "Próspera" (Special Economic Zone): Adopted Bitcoin as legal tender within its jurisdiction, operating independently of the national financial system.
  • "Bitcoin Valley" (Santa Lucia): Some businesses accept Bitcoin, highlighting informal adoption.

7. Sources (Summarized):

Full Analysis Report

Report on Retail Cryptocurrency Trading Status in Honduras

Date: 2025-06-26

Topic: Retail_Trading_Status

Description: Assess whether individual citizens and residents in the country are legally permitted to buy, sell, and hold cryptocurrencies. Detail the regulatory environment surrounding this activity (e.g., KYC/AML requirements imposed on platforms, general warnings issued).

Retail_Trading_Status: Gray-Zone

1. Identified Current Status: Gray-Zone

2. Detailed Narrative Explanation:

The status of retail cryptocurrency trading in Honduras is best described as a Gray-Zone. While there is no explicit law prohibiting individual citizens and residents from buying, selling, or holding cryptocurrencies, the regulatory environment is characterized by a lack of specific crypto-focused legislation, strong warnings from financial authorities, and a prohibition on financial institutions from dealing with or facilitating cryptocurrency transactions. This creates a situation where individuals can engage in crypto activities at their own risk, without legal protection or recourse, and outside the formal banking system.

Historical Context and Regulatory Stance:

The Central Bank of Honduras (BCH) has consistently stated that cryptocurrencies are not legal tender in the country and are not regulated or backed by the Honduran government. The BCH is the sole issuer of legal tender currency, the Lempira. Since 2018, the BCH has issued multiple communiqués warning the public about the risks associated with crypto assets, including their volatility and potential use in illicit activities. These warnings emphasize that any transaction with virtual assets is the sole responsibility of the individual performing it.

The National Banking and Insurance Commission (CNBS), the body responsible for supervising financial institutions, has taken a more restrictive stance concerning the involvement of regulated entities. In February 2024, the CNBS issued Resolution 069/09-02-2024 (also cited as Resolution 003/2024 in some sources), which explicitly prohibits supervised financial institutions (banks, insurers, etc.) from holding, investing, brokering, or trading in cryptocurrencies, crypto-assets, virtual currencies, tokens, or any similar virtual asset not issued or authorized by the BCH. Furthermore, these institutions are barred from allowing their platforms to be used for such operations. The CNBS cited risks of fraud, money laundering, and terrorist financing as reasons for this prohibition.

Implications for Retail Trading:

Despite the prohibition on financial institutions, individuals themselves are not explicitly banned from owning or trading cryptocurrencies. Peer-to-peer trading occurs, and Hondurans reportedly use offshore exchanges and over-the-counter (OTC) groups on platforms like Telegram and WhatsApp. This activity, however, happens in a regulatory vacuum concerning consumer protection, and there is no deposit guarantee for crypto holdings.

The Financial Intelligence Unit (FIU) enforces Anti-Money Laundering (AML) rules and mandates suspicious activity reports for crypto-related cash transactions above approximately US $10,000. Realized crypto gains are reportedly treated as "other income" subject to taxation.

Future Outlook:

There are indications of potential future regulation. Officials within the Secretariat of Finance are reportedly drafting a FinTech bill that could license Virtual Asset Service Providers (VASPs) and impose a cybersecurity levy on large crypto-to-fiat conversions. Public consultation on this bill is anticipated in late 2025, though no text is yet public. The CNBS is also reportedly debating a temporary ban on paid advertising for unlicensed crypto platforms until this bill matures. Additionally, the BCH is studying the feasibility of a retail Central Bank Digital Currency (CBDC), with a pilot potentially launching in 2026.

The existence of "Próspera," a special economic zone in Honduras that adopted Bitcoin as legal tender within its jurisdiction in April 2022, adds another layer of complexity, though it operates independently of the national financial system. Similarly, initiatives like "Bitcoin Valley" in Santa Lucia, where some businesses accept Bitcoin, highlight informal adoption.

Conclusion:

Retail cryptocurrency trading in Honduras is not illegal for individuals but exists in an unregulated and unsupported space. Financial authorities have issued strong warnings about the risks, and regulated financial entities are strictly prohibited from participating. This lack of a clear regulatory framework for retail trading, coupled with the freedom for individuals to engage at their own risk and the ongoing discussions about future legislation, firmly places the current status in a Gray-Zone.

3. Specific, Relevant Text Excerpts:

  • Consortium Legal (April 4, 2025): "It should be noted that, although cryptocurrencies are not prohibited for the public, their use and commercialization are carried out at the responsibility and risk of individuals, without the backing or protection of the Honduran financial authorities."
  • Coinfomania (June 21, 2025) / CoinStats (June 20, 2025): "Peer-to-peer trading: Tokens can be held/exchanged by individuals on their own risk and there is no deposit guarantee."
  • Comisión Nacional de Bancos y Seguros (CNBS) Resolution 069/09-02-2024 (as summarized by Consortium Legal, February 2024): "[The CNBS] prohibits supervised financial institutions from holding, investing, brokering or trading in cryptocurrencies, crypto-assets, virtual currencies, tokens or any other similar virtual asset that has not been issued or authorized by the BCH. Likewise, they are prohibited from allowing their financial users to use their platforms to carry out operations with this type of instrument." A similar prohibition is noted in CNBS Circular 003/2024.
  • Lexincorp (undated, accessed June 2025): "In Honduras, financial institutions are prohibited from engaging in cryptocurrency transactions to safeguard depositors' funds. However, there are no legal restrictions preventing the general public from conducting cryptocurrency transactions."
  • Central Bank of Honduras (BCH) (as reported by multiple sources, e.g., March 2022): "Bitcoin is a financial asset that exists virtually (also known as cryptocurrency), which at the moment in our country is not regulated and in most countries, it does not have the status of legal tender... any transaction conducted with a virtual asset is the sole responsibility of 'those who carry it out.'" And, "Cryptocurrency assets do not have support, so they are not regulated nor is their use guaranteed, therefore, they do not enjoy the protection granted by national laws."
  • Coinfomania (June 21, 2025) / CoinStats (June 20, 2025) on future legislation: "Officials inside the Secretariat of Finance are drafting a FinTech bill that would license Virtual-Asset Service Providers and impose a modest cybersecurity levy on large crypto-to-fiat conversions; public consultation is expected late 2025, though no text is yet public."

4. Direct, Accessible URL Links to Specific Sources:

(Please note that direct links to specific PDF documents or dynamic database entries from government portals may sometimes change. The provided links are to the most stable pages available at the time of this report.)

Web Sources (13)

Sources discovered via web search grounding

Search queries used (6)
  • current status of retail cryptocurrency trading in Honduras 2025
  • Honduras cryptocurrency laws and regulations 2025
  • Banco Central de Honduras statements on cryptocurrency 2025
  • Comisión Nacional de Bancos y Seguros Honduras cryptocurrency guidelines 2025
  • Are individuals in Honduras allowed to buy and sell cryptocurrencies 2025?
  • KYC/AML requirements for cryptocurrency platforms in Honduras 2025
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