Honduras’ crypto-friendly economic zone has made bitcoin legal tender. This allows the currency to be used for paying taxes and fees. In addition, bitcoin bonds can be issued within its jurisdiction using “world-class standards for AML and KYC.”
Bitcoin Operates as Legal Tender in Próspera
Próspera, a special economic zone located on the island of Roatan 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, “Bitcoin and other cryptocurrencies effectively operate as legal tender within its jurisdiction.”
A spokesperson for Próspera told Bitcoin.com News:
Próspera has no capital gains taxes, which means that bitcoin and other cryptocurrencies effectively operate as legal tender in the jurisdiction.
“Residents and businesses in Próspera may transact using bitcoin, Honduran Lempiras, U.S. dollars, or any other currency of their choice without triggering capital gains tax liabilities on transactions,” the spokesperson added.
These are the announcement notes
Contrary to most countries, bitcoin transactions and any other crypto currencies are exempted from capital gains taxes.
Emission of Bitcoin bonds
Próspera also announced that starting Thursday, “municipalities, local governments, and international firms can issue bitcoin bonds” in its jurisdiction “to attract foreign investments.”
The special economic zone noted that bitcoin bonds issued through Próspera “will comply with world-class standards for AML [anti-money laundering]KYC [know your customer].”
El Salvador (a neighboring Honduran nation) made Bitcoin legal tender last September alongside the U.S. Dollar. The country’s tourism has increased 30% after BTC became legal tender.
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