Crypto exchange Coinbase just announced that Hawaii residents can now use its platform to buy and sell digital assets.
In a statement, the largest US-based crypto exchange says its products and services are now available in The Aloha State after the Hawaii Department of Commerce and Consumer Affairs (DCCA) Division of Financial Institutions (DFI) made regulatory changes that provided clarity for cryptocurrency firms.
“We’ve worked diligently with local authorities to ensure we can enter the Hawaii market, and welcome their innovative, responsible approach, which aligns with our goal of providing a safe and compliant environment for all.”
Coinbase previously operated in Hawaii but pulled out in 2017 because of the state’s money transmitter license policy that required crypto firms to hold one-to-one cash reserves for the digital assets that they hold on behalf of customers.
In 2020, the state launched the Digital Currency Innovation Lab (DCIL) project which explored Hawaii’s crypto landscape and assessed the regulatory framework for digital asset companies.
The project concluded in June with authorities deciding that crypto companies will no longer require a Hawaii-issued money transmitter license to conduct business within the state.
In a statement issued in June, the DCCA said that crypto companies can also operate as an unregulated business albeit they will have to comply with federal licensing and registration requirements including those involving consumer protection and anti-money laundering measures.
“The research project revealed that the activities conducted by digital currency companies did not align with the concept of money transmission as outlined in Chapter 489D of the Hawai‘i Revised Statutes.”
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