Crypto-Friendly Special Economic Zone in Honduras Adopts Bitcoin as Legal Tender – Regulation Bitcoin News


A crypto-friendly special economic zone in Honduras has adopted bitcoin as legal tender, allowing the cryptocurrency to be used to pay taxes and fees. Additionally, bitcoin bonds can be issued within your jurisdiction using “world-class standards for AML and KYC.”

Bitcoin operates as legal tender in Prospera

Próspera, a special economic zone located on the island of Roatán in the Western Caribbean and the Northern Corridor of Honduras, announced Thursday that it has adopted bitcoin as legal tender. Referring to Próspera as “crypto-friendly,” the announcement details that “Bitcoin and other cryptocurrencies effectively operate as legal tender within their jurisdiction.”

A Próspera spokesperson told News:

Prospera has no capital gains tax, which means bitcoin and other cryptocurrencies effectively function as legal tender in the jurisdiction.

“Residents and businesses in Próspera can transact using bitcoin, Honduran lempira, US dollars, or any other currency of their choice without incurring capital gains tax liability on transactions,” the spokesperson added.

The ad notes:

Unlike most other jurisdictions, transactions in bitcoin and other cryptocurrencies are not subject to capital gains tax.

Bitcoin bond issue

Próspera also announced that as of Thursday, “municipalities, local governments and international firms will be able to issue bitcoin bonds” in their jurisdiction “to attract foreign investment.”

The special economic zone noted that the bitcoin bonds issued through Próspera “will meet world-class standards for AML [anti-money laundering] and KYC [know your customer].”

El Salvador, a neighboring country of Honduras, made bitcoin legal tender in September last year alongside the US dollar. The country’s tourism has increased 30% then BTC became legal tender.

What do you think about this special economic zone in Honduras adopting bitcoin as legal tender? Let us know in the comments section.

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kevin helms

Kevin, an Austrian economics student, found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in the security of Bitcoin, open source systems, network effects, and the intersection between economics and cryptography.

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