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. In addition, bitcoin bonds can be issued in their jurisdictions using “world-class standards for AML and KYC.”
Bitcoin serves as legal tender in Prospera
Prospera, a special economic zone located on the northern corridor of the island of Roatan and Honduras in the western Caribbean, announced on Thursday that it has adopted bitcoin as legal tender. Referring to Prospera as “crypto-friendly,” the announcement details, “Bitcoin and other cryptocurrencies effectively operate as legal tender in their jurisdictions.”
A Prospera spokesperson told Bitcoin.com News:
Prospera has no capital gains tax, which means that bitcoin and other cryptocurrencies effectively operate as legal tender in the jurisdiction.
“Prospera residents and businesses can transact using bitcoin, Honduran lempiras, US dollars or any other currency of their choice without triggering capital gains tax liabilities on the transaction,” the spokesperson said.
Announcement Note:
Unlike most other jurisdictions, transactions in bitcoin and other cryptocurrencies are not subject to capital gains taxes.
bitcoin bond issuance
Prospera also announced that starting Thursday, “municipalities, local governments, and international companies can issue bitcoin bonds” in their jurisdictions “to attract foreign investment”.
The Special Economic Zone noted that bitcoin bonds issued through Prospera “will comply with world-class standards for AML”. [anti-money laundering] and KYC [know your customer],
El Salvador, a neighboring country of Honduras, made bitcoin as legal tender alongside the US dollar in September last year. After the legal tender of BTC, the tourism of the country has increased by 30%.
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