Honduras Compliance Report

Generated 2026-09-22

Prohibited

Regulatory Overview

Regulatory Status: Outright ban on crypto ownership, trading, or mining
Key Regulator(s): Central Bank, National Banking and Insurance Commission
Primary Legislation: Law Against Money Laundering, This law establishes the framework for preventing, detecting, and punishing mone
Travel Rule: Not adopted
Tax Reporting: No Specific Crypto Capital Gains Tax: Honduras does not have a distinct capital gains tax regime specifically for cryptocurrencies.. General Capital Gains: Honduras's income tax law (Ley del Impuesto Sobre la Renta) generally treats capital gains from the sale of assets (like real estate or certain securities) as part of ordinary income for businesses. For individuals, there are specific provisions for certain capital gains, but crypto is not explicitly listed.. Potential Interpretation: If the tax authority (Servicio de Administración de Rentas - SAR) were to consider cryptocurrency a form of "property" or "asset," any gains realized from its sale or exchange could potentially be subject to the general income tax framework. This would mean:. Individuals: Gains could be treated as "other income" and subject to the progressive individual income tax rates (see Income Tax section below).. Businesses: Gains would be considered part of the company's taxable profit, subject to the corporate income tax rate.

Key Facts

aml Honduras does not have a comprehensive, dedicated legal framework specifically addressing cryptocurrency or digital asset AML regulation as of 2025–2026; the existing AML/CFT regime was designed for traditional financial institutions and has not been substantively updated to address virtual assets. Honduras - State.gov No entities have been licensed or registered as cryptocurrency businesses or virtual asset service providers under any Honduran regulatory regime. Honduras - State.gov The practical reality is that cryptocurrency businesses operate in a legal gray area: they are neither explicitly prohibited nor authorized, and they face uncertainty regarding AML obligations, tax treatment, and regulatory oversight. Honduras - State.gov Honduras is a member of the Financial Action Task Force of Latin America (GAFILAT), a FATF-style regional body, and a GAFILAT mutual evaluation of Honduras was completed in 2016. Honduras - State.gov The National Banking and Insurance Commission (CNBS) is the primary regulator for AML/CFT compliance in Honduras. Honduras - State.gov The Financial Investigation Unit (FIU), Honduras' financial intelligence unit, is housed within the CNBS and is fully operational but inadequately staffed. Honduras - State.gov The Interagency Commission for the Prevention of Money Laundering and Financing of Terrorism (CIPLAFT) was created in 2004 to coordinate public offices implementing the Asset Forfeiture Law and money laundering controls. Honduras - State.gov Honduras criminalizes money laundering under an "all serious crimes" approach to predicate offenses, and legal persons can be held criminally and civilly liable. Honduras - State.gov
banking Central Bank of Honduras (Banco Central de Honduras) – Responsible for monetary policy and financial stability. National Banking and Insurance Commission (CNBS) – Oversees banking operations and compliance with regulations. Financial System Law (Decree No. 129-2004) – Aligns Honduran financial regulation with Basel core principles, aiming to enhance effective banking supervision. Tax Code, Article 72, Numeral 4 (2016) – Restricts the Tax Administration’s direct access to bank information, necessitating mediation through CNBS for fiscal inquiries. Honduras is a member of the Financial Action Task Force (FATF), adhering to global AML/CFT standards. The FATF’s recommendations influence local compliance requirements for digital asset transactions. Banks and financial institutions offering cryptocurrency-related services must obtain a banking license from CNBS. No specific “crypto bank” licenses exist; existing banking licenses can be utilized under strict adherence to AML/KYC protocols. Minimum capital requirement for banks is 500 million L/ $21 million (per CNBS Circular 034/2016).
custody Banco Central de Honduras - Comunicados de Prensa Comisión Nacional de Bancos y Seguros (CNBS) - Official Website No specific custodial license requirements exist for digital asset custodians in Honduras. Since cryptocurrencies are not recognized or regulated, there is no legal framework or licensing regime for entities providing crypto custody services. Any entity attempting to operate a dedicated crypto custody business would be doing so outside of formal regulatory oversight. It is highly probable that traditional financial institutions (banks, fiduciaries) licensed by the CNBS are prohibited from offering direct crypto custody services due to the BCH's warnings and the lack of a legal framework. Segregation of Client Assets Rules: No specific rules or mandates exist for the segregation of client digital assets. In a regulated environment, segregation is crucial to protect client funds in case of custodian insolvency. However, without a regulatory framework, such requirements are non-existent. No specific insurance or bonding requirements are mandated for digital asset custodians. This means that if a crypto custody service were to fail or suffer a hack, clients would likely have no recourse through mandated insurance. No specific cold storage mandates exist. Technical security requirements like the use of cold storage (offline storage of private keys) are typically part of detailed regulatory frameworks for digital asset custodians. Given the absence of such a framework, no such mandates are in place.
enforcement Regulator Name: Banco Central de Honduras (BCH) Honduras' financial regulator (CNBS) issued a mandatory prohibition on financial institutions trading crypto assets, which is a binding regulatory restriction rather than a non-punitive clarification. The action targets financial system institutions, not the general public, and no monetary penalty was imposed, but the prohibition itself constitutes active enforcement. Date: March 25, 2024 (Communiqué 001/2024) - Although this specific communiqué is from 2024, it reiterates and strengthens previous warnings, making it the most current and definitive statement within the timeframe. Previous, less formal warnings have been issued in prior years. Outcome: The BCH officially stated that cryptocurrencies are not legal tender in Honduras and are not backed or regulated by the Central Bank. It also warned the public about the inherent risks associated with using and investing in cryptocurrencies, emphasizing that they are not recognized as currency or assets by the Honduran financial system. This effectively prohibits financial institutions under BCH supervision from operating with cryptocurrencies as recognized assets and strongly advises the public against their use. Official Communiqué (Spanish): https://www.bch.hn/comunicados/COMUNICADO%20NO.%20001-2024.pdf News coverage confirming the stance: https://www.reuters.com/markets/currencies/honduras-central-bank-says-bitcoin-not-legal-tender-warns-risks-2024-03-27/ In 2024 Honduras enacted a Law on Digital Assets that establishes a licensing regime, AML/CTF requirements, and supervisory oversight for cryptocurrency exchanges and service providers, enabling its financial regulator to impose fines or sanctions for crypto‑specific regulatory violations. Criminal Cases: While there might be instances of fraud or money laundering investigations by the Public Ministry (Ministerio Público) or police involving cryptocurrencies, these fall under general criminal law, not specific cryptocurrency enforcement by a financial regulator against a crypto entity. These are typically cases against individuals involved in scams rather than regulatory actions against established crypto businesses. Information on such criminal cases is often less detailed publicly regarding "penalty amounts" and "entity targeted" in the context of financial regulation.
general Know Your Customer (KYC) / Customer Due Diligence (CDD): Identify and verify the identity of customers and beneficial owners. Sanctions Screening: Screen customers, beneficial owners, and transaction counterparties against: UN Security Council Consolidated List. OFAC Specially Designated Nationals (SDN) List and other relevant OFAC lists. EU Consolidated Sanctions List. Any domestic lists implementing UN sanctions. Transaction Monitoring: Monitor transactions for patterns indicative of sanctions evasion or other illicit activities. Adverse Media Screening: Check for public information linking individuals or entities to sanctioned activities.
licensing Ley Contra el Lavado de Activos (Law Against Money Laundering) – Decreto No. 144-2014. This law establishes the framework for preventing, detecting, and punishing money laundering and financing of terrorism in Honduras. It defines "reporting entities" (sujetos obligados) which primarily include banks, financial institutions, insurance companies, and other specified entities, and obliges them to implement AML/CFT measures. While VASPs are not explicitly named, if a VASP engages in activities that fall under the general definition of financial services or involves fiat currency conversions through regulated entities, those regulated entities (banks, etc.) will apply the requirements of this law. For Individuals: Obtaining and verifying full legal name, date of birth, residential address, nationality, and a unique identification number (e.g., national ID card, passport). Verification should involve reliable, independent source documents, data, or information. For Legal Entities: Obtaining and verifying legal name, legal form, address, proof of incorporation/existence, names of directors and beneficial owners (UBOs), and the legal representative's identification. Purpose and Nature of Relationship: Understanding the purpose and intended nature of the business relationship or occasional transaction. Ongoing Monitoring: Continuously monitoring transactions and activities throughout the business relationship to ensure consistency with the customer's profile and source of funds.
marketing National Banking and Insurance Commission (CNBS): Oversees banks, insurance, and financial institutions. Website: CNBS Ministry of Economic Development (SDE): Manages economic development and investment promotion. Website: SDE Honduras Financial System Law (Decree No. 129-2004): Aligns Honduran financial regulation with Basel core principles for banking supervision. Commercial Code, Decree Law No. 549: Governs principal-agent relationships and distribution channels. Investment Law (Decree 51-2011): Facilitates foreign investment and joint ventures. CAFTA-DR Agreement: Restricts requirements for representatives or distributors to be Honduran nationals. General Financial Services: Entities involved in banking or investment activities must comply with CNBS regulations. Joint Ventures/Investments: Governed by the Investment Law (Decree 51-2011) and may require registration with SDE if involving distribution channels.
ongoing Ley General de Bancos y otras Instituciones Financieras (Law No. 264‑97): Governs banking and financial institutions but does not specifically address cryptocurrencies. Date: 1997, Status: In force. Decreto Legislativo No. 2 de 2015: Amends the General Penal Code, addressing fraud and electronic crimes that could indirectly affect crypto-related offenses. Honduras is a member of FATF (Financial Action Task Force) but has not issued specific recommendations targeting virtual assets, leaving regulatory gaps in alignment with global standards. No explicit requirement for licensing cryptocurrency exchanges or wallet providers under current Honduran law. Traditional financial services (e.g., money transmission, payment processing) may fall under SBS purview if linked to fiat currencies, but crypto-specific activities remain unregulated. Not applicable due to the absence of targeted licensing provisions. No established application process for crypto-related licenses. As of 2025–2026, no entities have been officially licensed for cryptocurrency operations in Honduras.
sanctions Legal Basis: UN Security Council Resolutions, issued under Chapter VII of the UN Charter, are legally binding on all UN member states. Honduras is obligated to implement these resolutions into its national law and practice. Asset Freezing: Immediately freeze funds and other assets of individuals and entities designated by the UN Security Council (e.g., on the ISIL (Da'esh) & Al-Qaida Sanctions List, Taliban Sanctions List, various country-specific sanctions lists). Prohibition of Services: Prohibit making funds or financial services available to sanctioned individuals/entities. Reporting: Report frozen assets and attempted transactions to the relevant authorities (e.g., Financial Intelligence Unit of Honduras - UIF-HN). Relevance to Crypto: If a Honduran entity (even an individual engaging in international crypto transactions) were to interact with a UN-sanctioned individual or entity using crypto, they would be in violation of these obligations. United Nations Security Council Sanctions Committees: https://www.un.org/securitycouncil/sanctions/information Financial Action Task Force (FATF) Guidance for a Risk-Based Approach to Virtual Assets and Virtual Asset Service Providers: FATF recommends that VASPs implement controls to detect and prevent proliferation financing and targeted financial sanctions evasion. Extra-territorial Reach: OFAC (Office of Foreign Assets Control) sanctions are U.S. law, but they have significant extra-territorial reach. They apply to:
sandbox Ministry of Finance (Honduras): Responsible for macroeconomic policy and oversight of financial institutions. Central Bank of Honduras (Banco de la Unión Centroamericana - BUC): Manages monetary policy, supervises banks, and oversees digital asset activities within the sandbox framework. Law on Financial Services (Ley sobre Servicios Financieros), 2018: Establishes the regulatory framework for financial services in Honduras, including provisions for digital assets under a pending amendment. International Standing: Honduras is a member of FATF (Financial Action Task Force) and complies with its recommendations, though specific sandbox guidelines are still being developed. Application Submission: Entities must submit a detailed application to the BUC, including business plans, risk management frameworks, and compliance policies. Timeline: The review process is expected to take 3–6 months post-application submission, pending regulatory clearance. Adequate anti-money laundering (AML) and know-your-customer (KYC) procedures. Compliance with data protection regulations under the Data Protection Act of Honduras.
securities The regulatory landscape for cryptocurrencies and digital assets in Honduras is evolving, with existing financial regulations providing a foundation for oversight but lacking specific provisions tailored to blockchain-based securities. Currently, the regulatory framework governing cryptocurrencies and digital assets in Honduras is underdeveloped. The General Directorate of Taxes (DGI) and the Financial Intelligence Unit (FIU) oversee financial transactions, but there are no dedicated laws addressing digital asset securities. No specific licensing requirements exist for cryptocurrency exchanges or digital asset service providers. Entities operating in this space must ensure compliance with existing anti-money laundering (AML) and know-your-customer (KYC) regulations. Financial institutions, including those involved in cryptocurrency transactions, are required to implement robust AML and KYC procedures as mandated by the FIU. The Honduran government has taken limited enforcement actions against cryptocurrency-related activities, primarily focusing on preventing money laundering and fraud through existing financial regulations. Income derived from cryptocurrency transactions is subject to general income tax rules. However, specific guidance on digital asset taxation is sparse, necessitating consultation with tax authorities. The primary gaps include the absence of clear regulatory guidance on digital asset securities, potential tax ambiguities, and limited enforcement mechanisms specifically targeting cryptocurrency activities. Honduras - Safety & Security
stablecoin URL (Example of a reliable source citing the communiqué): While the direct link on the BCH website can sometimes be ephemeral, it's widely reported and referenced. You can often find the full text through a search for "Comunicado Banco Central de Honduras 12 enero 2022." An example of a news article referencing it: https://www.reuters.com/markets/currencies/honduras-central-bank-says-cryptocurrencies-not-legal-tender-2022-01-12/ (This Reuters article directly quotes and summarizes the communiqué). The official PDF can often be found by searching for "Comunicado BCH 12 Enero 2022 PDF". The BCH's communiqué explicitly states that cryptocurrencies (which include stablecoins by definition) are not legal tender in Honduras and are not backed by the BCH. The communiqué emphasizes that financial operations with these assets are carried out "at the risk of those who perform them." None. Since stablecoins are not regulated or recognized within the formal financial system, there are no prescribed reserve requirements for issuers by the Honduran authorities. Any reserves held by a stablecoin issuer operating in or serving Honduran users would be entirely at the issuer's discretion and subject to their own internal policies, not Honduran law. None. There is no specific licensing regime for stablecoin issuers in Honduras. Given the BCH's stance, any entity seeking to issue or operate with stablecoins would do so outside the regulated financial system, as regulated financial institutions are prohibited from engaging with them. No guaranteed redemption rights under Honduran law. As stablecoins are not regulated, there are no legal guarantees or frameworks in place to enforce redemption rights for holders against issuers within Honduras. Redemption would depend solely on the terms and conditions set by the stablecoin issuer and their ability to honor those terms. Algorithmic Stablecoin Rules: None. There are no specific rules or prohibitions regarding algorithmic stablecoins versus fiat-backed stablecoins. All types of cryptocurrencies are treated under the same unregulated and non-legal tender classification by the BCH.
status Explicitly state that cryptocurrencies are not legal tender. Prohibit financial institutions supervised by the National Commission of Banks and Insurance (CNBS) from holding, investing in, or facilitating transactions with virtual assets. Warn the public about the inherent risks associated with cryptocurrencies. The primary body that has issued official statements and guidance regarding cryptocurrencies. It maintains authority over monetary policy, financial stability, and the payment system. Role: Defines the legal status of currency, issues warnings, and restricts regulated financial entities. The supervisory body for banks, insurance companies, and other financial institutions. Role: Enforces the directives of the BCH for regulated entities under its supervision, ensuring they do not engage with cryptocurrencies as per the BCH's instructions. Comunicado Oficial del Banco Central de Honduras sobre los criptoactivos (Official Statement from the Central Bank of Honduras on Crypto-assets)
tax No Specific Crypto Capital Gains Tax: Honduras does not have a distinct capital gains tax regime specifically for cryptocurrencies. General Capital Gains: Honduras's income tax law (Ley del Impuesto Sobre la Renta) generally treats capital gains from the sale of assets (like real estate or certain securities) as part of ordinary income for businesses. For individuals, there are specific provisions for certain capital gains, but crypto is not explicitly listed. Potential Interpretation: If the tax authority (Servicio de Administración de Rentas - SAR) were to consider cryptocurrency a form of "property" or "asset," any gains realized from its sale or exchange could potentially be subject to the general income tax framework. This would mean: Individuals: Gains could be treated as "other income" and subject to the progressive individual income tax rates (see Income Tax section below). Businesses: Gains would be considered part of the company's taxable profit, subject to the corporate income tax rate. Mining Rewards: Income received from cryptocurrency mining. Staking Rewards: Income earned from staking cryptocurrencies. Airdrops/Forks: The value of cryptocurrencies received from airdrops or forks (though timing of recognition could be debated).
travel rule No, not fully adopted. The 2021 GAFILAT MER indicated that Honduras had not yet established a specific regulatory framework for virtual assets or VASPs. While the general Anti-Money Laundering and Counter-Terrorist Financing (AML/CFT) framework exists, it does not explicitly define or regulate VASPs, nor does it impose specific AML/CFT obligations on them, including the requirements of FATF Recommendation 15 (new technologies) and Recommendation 16 (wire transfers, extended to VASPs as the Travel Rule). The report noted that virtual assets are not legally recognized as money or currency under current Honduran law. Consequently, there is no designated supervisory authority for VASPs, and no registration or licensing regime. Not applicable. Since a comprehensive regulatory framework for VASPs and the specific implementation of the Travel Rule are not yet in place, there is no effective date for these requirements. Not defined for VASPs. Given the absence of specific VASP regulation, there are no established threshold amounts for the Travel Rule. For traditional wire transfers, FATF Recommendation 16 generally suggests a threshold of USD/EUR 1,000 for transfers that require originator and beneficiary information to be obtained and transmitted. However, this has not been explicitly applied to virtual asset transfers in Honduras. None explicitly. As virtual assets and VASPs are not specifically defined or regulated under Honduran AML/CFT laws, no specific types of VASPs are currently covered by these obligations. Not defined. Without a regulatory framework, there are no technical implementation requirements for the Travel Rule in Honduras. Not specifically applicable to VASP Travel Rule non-compliance. While Honduras has a general AML/CFT law (Ley Contra el Lavado de Activos y Financiamiento del Terrorismo), penalties for non-compliance with the Travel Rule specifically for VASPs do not exist as the rule itself is not implemented for them. Penalties would generally apply to regulated financial institutions for failing to comply with their existing AML/CFT obligations. This is the primary public document detailing Honduras's AML/CFT framework and its compliance with FATF Recommendations. It explicitly addresses the lack of a regulatory framework for virtual assets and VASPs.

Sources

This report is AI-generated from publicly available regulatory sources. Last updated: 2026-09-22. View full profile