Honduras

**Report on the Current Status of Retail Cryptocurrency Trading 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).

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**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." This is because 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 these assets. This creates a complex and somewhat ambiguous situation for retail crypto users.

**Historical Context and Regulatory Stance:**

Honduran financial authorities, primarily the Central Bank of Honduras (BCH) and the National Banking and Insurance Commission (CNBS), have consistently adopted a cautious and restrictive stance towards cryptocurrencies. Since 2018, the BCH has issued multiple communiqués warning the public about the risks associated with crypto assets. These warnings emphasize that cryptocurrencies are not legal tender in Honduras (the Lempira being the sole legal tender), lack government backing, are not regulated, and therefore, any transactions are at the sole risk and responsibility of the individuals involved.

**Key Regulatory Actions and Statements:**

*   **Central Bank of Honduras (BCH):** The BCH has repeatedly stated that cryptocurrencies have no legal backing in the country and are not regulated, meaning they do not enjoy the protection granted by national laws. The Constitution of Honduras (Art. 342), the Monetary Law, and the Law of the Central Bank of Honduras establish the BCH as the sole issuer of legal tender.
*   **National Banking and Insurance Commission (CNBS):** The CNBS has taken more direct measures concerning financial institutions.
    *   In February 2024, the CNBS issued Resolution 069/09-02-2024 (also referred to as Circular No. 003/2024 or Resolution 003/2024 in some sources). This resolution 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, financial institutions are prohibited from allowing their platforms to be used by their customers for crypto operations. The rationale behind this prohibition is to protect consumers from potential fraud, operational and legal risks, high volatility, and the potential use of crypto in illicit activities like money laundering and terrorism financing.
    *   Importantly, the CNBS later clarified that this prohibition applies specifically to financial institutions to protect depositors' funds, and that **individual users remain free to trade cryptocurrencies at their own risk.**

**Implications for Retail Users:**

*   **Permitted but Unprotected:** Honduran citizens and residents are not legally barred from buying, selling, or holding cryptocurrencies on a peer-to-peer basis or through offshore exchanges. However, they do so without any legal protection or backing from Honduran financial authorities.
*   **No Specific Crypto Regulations for Individuals:** There is no specific legislation in Honduras that directly regulates individual cryptocurrency investment or trading, including specific KYC/AML requirements for individuals engaging directly in P2P trades outside of regulated financial entities (which are banned from participating). However, general financial laws and AML/CFT frameworks exist. The Financial Intelligence Unit (FIU) enforces AML rules and mandates suspicious-activity reports for crypto-related cash transactions above approximately US $10,000.
*   **Use of Offshore Platforms:** Due to the restrictions on domestic financial institutions and the lack of licensed local exchanges, Hondurans typically use offshore exchanges or engage in Over-The-Counter (OTC) trading through platforms like Telegram or WhatsApp groups.
*   **Taxation:** Realized crypto gains are reportedly treated as "other income" and may be subject to income tax rates up to 15 percent, according to some secondary sources.
*   **Warnings and Lack of Recourse:** Authorities consistently warn about the risks, including volatility and potential for fraud. Individuals engaging in crypto activities have no recourse to Honduran financial authorities in case of loss or dispute.

**Future Outlook:**

There are indications of potential future developments. Officials within the Secretariat of Finance are reportedly drafting a FinTech bill that might include licensing for Virtual Asset Service Providers (VASPs). Public consultation on this bill is anticipated, though no official text was public as of early 2025. The CNBS is also reportedly considering a temporary ban on advertising for unlicensed crypto platforms until such a bill matures. Additionally, the BCH has been studying the feasibility of a retail Central Bank Digital Currency (CBDC), with a potential pilot launch in 2026.

**Complexity and Ambiguity:**

The "Gray-Zone" status arises from this dichotomy: individuals are not prohibited from transacting in cryptocurrencies, but they operate in an unregulated space from a crypto-specific perspective, with no consumer protection and active discouragement from authorities who have barred the formal financial system from participation. While general AML laws apply, the direct buying, selling, and holding by individuals are not under a specific crypto regulatory framework, yet it's not explicitly "Allowed-Unregulated" due to the strong official warnings and the complete de-risking of the formal financial sector. The activity is tolerated for individuals at their own risk, rather than explicitly permitted within a defined (or even undefined but unwarned) space.

**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."
*   **Consortium Legal (April 4, 2025):** "In February 2024, the CNBS issued resolution 069/09-02-2024, which 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."
*   **Coinfomania (June 21, 2025):** "Peer-to-peer trading: Tokens can be held/exchanged by individuals on their own risk and there is no deposit guarantee."
*   **Coinfomania (June 21, 2025):** "Banking: Banks and insurers are not allowed to deal with crypto, except with special licence granted by BCH, which has not occurred."
*   **Coinfomania (June 21, 2025):** "Can Hondurans lawfully own Bitcoin? Yes, private holding and peer-to-peer trading are not prohibited."
*   **Lexincorp (Undated, accessed June 2024):** "The CNBS prohibits supervised financial institutions from transacting with cryptocurrencies or allowing users to conduct crypto transactions via their platforms. However, a clarification was later issued, stating that the prohibition applies specifically to financial institutions to protect depositors' funds. Individual users remain free to trade cryptocurrencies at their own risk."
*   **Lexincorp (Undated, accessed June 2024):** "Honduras has no specific regulation covering digital assets broadly or cryptocurrencies in particular. Despite this, cryptocurrency usage in the country is acknowledged."
*   **Global Finance Magazine (March 4, 2024):** "The country's National Banking and Insurance Commission (CNBS) has prohibited them from the country's financial system “with immediate effect.” ... The blanket ban applies to all institutions supervised by the CNBS."
*   **Global Finance Magazine (March 4, 2024):** "Honduran law does not regulate virtual assets; some platforms operate there and allow trading."

**4. Direct, Accessible URL Links to Sources:**

*   **Consortium Legal:** [https://consortiumlegal.com/en/insights/investment-in-cryptoassets-and-cryptocurrencies-in-honduras/](https://consortiumlegal.com/en/insights/investment-in-cryptoassets-and-cryptocurrencies-in-honduras/) (Note: While the article is dated April 4, 2025, this may be a future publication date or a typo on the website. The content reflects recent 2024 developments.)
*   **Coinfomania:** [https://coinfomania.com/cryptocurrency-regulation-in-honduras/](https://coinfomania.com/cryptocurrency-regulation-in-honduras/)
*   **Lexincorp:** [https://www.lexincorp.com/current-situation-of-cryptocurrencies-in-honduras/](https://www.lexincorp.com/current-situation-of-cryptocurrencies-in-honduras/)
*   **Global Finance Magazine:** [https://www.gfmag.com/magazine/march-2024/honduras-crypto-gets-nixed](https://www.gfmag.com/magazine/march-2024/honduras-crypto-gets-nixed)
*   **Comisión Nacional de Bancos y Seguros (CNBS) - Main Site (for general reference, specific circulars may need direct linking if found):** [https://www.cnbs.gob.hn/](https://www.cnbs.gob.hn/)
*   **CNBS Portal Único de Transparencia (for searching circulars like 003/2024):** [https://portalunico.iaip.gob.hn/portal/index.php?portal=305](https://portalunico.iaip.gob.hn/portal/index.php?portal=305) (Circular 03/2024 is listed here)
*   **CNBS Comunicado - Aclaración de Prohibición en el uso de Criptomonedas:** [https://www.cnbs.gob.hn/blog/2024/02/16/comunicado-aclaracion-de-prohibicion-en-el-uso-de-criptomonedas/](https://www.cnbs.gob.hn/blog/2024/02/16/comunicado-aclaracion-de-prohibicion-en-el-uso-de-criptomonedas/) (This link is to a clarification, the original Circular 003/2024 might be linked from here or found via the transparency portal).

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**Disclaimer:** This report is based on information available up to the specified date and is for informational purposes only. It does not constitute legal or financial advice.