Crypto exchange Coinbase just announced that Hawaii residents can now use their platform to buy and sell digital assets.
In a statement, the largest US-based crypto exchange say 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 companies.
“We have worked closely with local authorities to ensure we can enter the Hawaiian 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 withdrew from that in 2017 due to the state’s licensing policy that required crypto companies to maintain one-for-one cash reserves for the digital assets they hold on behalf of customers.
In 2020, the state launched the Digital Currency Innovation Lab (DCIL) project that explored Hawaii’s crypto landscape and assessed the regulatory framework for digital asset companies.
The project concluded in June, authorities decided that crypto companies will no longer need a Hawaii-issued money transmitter license to do business within the state.
In a June statement, the DCCA said crypto companies can also operate as an unregulated business, although they will have to comply with federal licensing and registration requirements, including those related to consumer protection and anti-money laundering measures.
“The research project found that the activities of digital currency companies were not consistent with the concept of money transmission as set forth in Chapter 489D of the Hawai’i Revised Statutes.”
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