- The US state of Hawaii has received green light for cryptocurrency trading as 12 crypto companies have been approved for operations.
- These 12 firms are approved for trading digital assets in Hawaii without requiring a money transmission license.
The US state of Hawaii has received green light for cryptocurrency trading as 12 crypto companies have been approved for operations. These 12 firms are approved for trading digital assets in Hawaii without requiring a money transmission license. They will be not fined or charged for conducting unlicensed crypto transactions for the next two years.
Prior to this, Crypto Laws Were Strict in Hawaii
Previously, cryptocurrency trading in Hawaii was challenging because of the double-reserve requirement legislation that was introduced back in 2017. According to this law, it was compulsory for all the exchanges to balance the total amount of crypto under each user with the equivalent amount of fiat currency. Consequently, many crypto companies halted their businesses and packed their bags from Hawaii. One of the largest cryptocurrency platforms, Coinbase had to stop operations in 2018 owing to its strict policies on holding fiat currency reserves.
Some of the Prominent Exchanges Like Gemini, Bitflyer Accepted in the Project
However, things are different now for Hawaiian traders. In fact, the 12 companies that were allowed to operate were for a pilot test for a project. They were selected by Digital Currency Innovation Lab (DCIL) and the Hawaii Technology Development Corporation (HTDC) for testing the brand new crypto regulatory sandbox. The program started from 17th March when it first began accepting applications for the project. The project is expected to start from August 19, 2022 and end on December 31, 2022.
Apex Crypto, Bitflyer USA, Blockfi, Cex.io, Cloud Nalu, Coinme, Erisx, Flexa, Gemini Exchange, Novi Financial, River Financial, and Robinhood Crypto are among the 12 cryptocurrency companies that were selected for the project. These companies must send all the monitoring data, updates, and transactions to the DFI without fail.
Project Will Provide New Opportunities
This new project is expected to foster new economic opportunities for people in Hawaii. The regulatory sandbox project will provide safe guidance towards involving themselves in cryptocurrency services. In addition the project is also aimed at setting a friendly digital currency legislation in Hawaii. Hawaii’s Commissioner of Financial Institutions, Iris Ikeda said that DFI is actively utilising its authority to introduce digital assets in new and innovative ways. He ensured that by acknowledging the crypto as the propeller to the future, the authority will do its best to construct a framework for its legislation which will enhance its growth in Hawaii.