Honduras Bans Financial Firms from Crypto Trading and Holdings Citing Lack of Protections
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Honduras' financial regulator banned financial institutions from crypto trading or holding digital assets due to lack of regulations around crypto.
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The ban aims to protect consumers from fraud, operational issues, and illicit activities associated with decentralized crypto businesses.
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Honduras lacks clear laws addressing crypto assets specifically, leaving users vulnerable.
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The directive forbids local financial entities having any association with crypto assets, tokens or similar digital assets.
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The ban contrasts growing institutional interest in crypto in countries like the US that are embracing assets like Bitcoin.