Honduras’ Prospera Economic Zone, situated on Roatan Island, has officially recognized Bitcoin as a unit of account. This significant move acknowledges Bitcoin’s role in various commercial, fiscal, and financial transactions. The announcement was made by Jorge Colindres, the acting manager and Tax Commissioner of the zone, who provided details on the criteria that legal entities must meet to officially adopt Bitcoin as their primary unit of account.
This development follows speculation about Honduras potentially following El Salvador’s lead in recognizing Bitcoin as legal tender. However, it’s important to note that in 2022, the Central Bank of Honduras denied reports of Bitcoin legalization, warning against the use of cryptocurrency in payments due to a lack of legal backing.
In a recent post on social media platform X (formerly Twitter), Colindres explained that the decision was made to provide more financial freedom to individuals and businesses operating within the Prospera Economic Zone. He stated, “At @ProsperaZEDE we believe in the right to financial freedom and monetary freedom. People should be free to carry out transactions, do their accounting, and report taxes in the currency of their free choice.”
The announcement not only sets out the conditions for entities to adopt Bitcoin as their unit of account but also provides an approved form for making this election. To simplify the process further, Prospera ZEDE’s General Service Provider will release BTC Election Notification form templates.
An upgrade to the eProspera eGovernance platform is also in progress to streamline data entry and reporting related to the Bitcoin election by entities, with the aim of facilitating compliance with this new accounting process.
However, Colindres acknowledged that the implementation of the “Final BTC Tax Payment Procedure” faces challenges due to technological limitations within the eGovernance system and external regulatory issues. As a temporary measure, entities choosing Bitcoin will calculate their tax obligations internally using BTC as a reference but will report and pay in US dollars or Honduran Lempiras to Prospera ZEDE.
Once these issues are resolved, entities will be able to report and settle their tax obligations directly in Bitcoin. Those interested in adopting BTC as their unit of account must file a notice with Prospera’s tax commission within 30 days after the relevant tax period.
In other news, Paxos is engaging in “constructive” discussions with the US SEC over BUSD. The Financial Regulator in New York has fined Robinhood’s Cryptocurrency Division for $30M. Robinhood has also acquired UK cryptocurrency firm Ziglu.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | ðŸ‡ðŸ‡³ 🇸🇻 🇺🇸 🇬🇧 🇮🇳 |
| Sentiment | neutral |
| Relevance Score | 1 |
| People | Jorge Colindres |
| Companies | eProspera eGovernance platform, @ProsperaZEDE, Robinhood’s Cryptocurrency Division, Prospera Economic Zone, Central Bank of Honduras |
| Currencies | honduran lempira, Bitcoin, US Dollar |
| Securities | None |
