Bitcoin has been recognized as legal tender in a crypto-friendly special economic zone in Honduras, allowing the cryptocurrency to be used to pay taxes and fees. Furthermore, “world-class standards for AML and KYC” can be used to issue bitcoin bonds within its jurisdiction.
Próspera Accepts Bitcoin as Legal Tender
Próspera, a special economic zone in the Western Caribbean and the Northern Corridor of Honduras, announced that bitcoin has been accepted as legal cash. “Bitcoin and other cryptocurrencies effectively operate as legal cash inside its jurisdiction,” the release says, referring to Próspera as “crypto-friendly.”
Próspera has no capital gains taxes, which effectively makes bitcoin and other cryptocurrencies legal tender in the country.
Residents and enterprises in Próspera can conduct business in bitcoin, Honduran Lempiras, US dollars, or any other currency without incurring capital gains tax liabilities, according to the spokeswoman.
The following is from the announcement:
Transactions in bitcoin and other cryptocurrencies are not subject to capital gains taxes, unlike most other jurisdictions.
Bitcoin Bonds are being Issued
Próspera also said that “municipalities, local governments, and multinational enterprises” will be able to issue bitcoin bonds in its jurisdiction beginning Thursday in order to “attract foreign investment.”
Próspera bitcoin bonds will “comply with world-class requirements for AML anti-money laundering and KYC [know your customer],” according to the special economic zone.
In September of last year, El Salvador, a neighboring country to Honduras, declared bitcoin legal tender alongside the US dollar. After the BTC became legal tender, tourism in the country soared by 30%.
Also Read: Which Countries May Legalize Bitcoin in 2022?
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