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The US state of Hawaii has authorized 12 cryptocurrency companies to begin operating in the state without the need for a license to transmit money. No action will be taken against them for conducting unlicensed money transmission business for two years.
Hawaii Green-Lights 12 Crypto Companies
Several cryptocurrency companies independently announced Wednesday that they have been launched into the green light in the US state of Hawaii. They were admitted to the state’s Digital Currency Innovation Lab (DCIL), a program that “allows digital currency issuers to do business in Hawaii without obtaining a state license to transfer money,” the program’s website reads. This regulatory sandbox is in partnership with the Hawaii Division of Financial Institutions (DFI).
The program, which runs from August 19 to December 31, 2022, accepted requests from cryptocurrency companies between March 17 and May 1. A total of 19 companies have applied; 12 companies, including several cryptocurrency exchanges, met the program conditions and were admitted. Website details:
The participating company will be given 2 years to transact in digital currency. DFI issued a “no action message” stating that “no action will be taken” against companies conducting what DFI would consider unlicensed money transmission business, if they have been successfully admitted to the program.
The 12 companies admitted to the program are Apex Crypto, Bitflyer USA, Blockfi, Cex.io, Cloud Nalu, Coinme, Erisx, Flexa, Gemini Exchange, Novi Financial, River Financial and Robinhood Crypto.
The DFI will monitor all cryptocurrency transactions taking place in the Digital Currency Innovation Lab. Participants will be required to provide updates, including the number and value of transactions. They are also required to provide information on the number of complaints received and on any regulatory enforcement orders.
Participants who do not receive explicit approval to continue operations must complete all cryptocurrency transactions at the end of the two-year period. “For the holding agreement, companies must also execute the liquidation plan and the exit strategy. DFI will determine the appropriate license for the company to continue operations, if applicable, “the website clarifies.
Hawaii previously had strict rules for cryptocurrency businesses, prompting a number of companies to leave the state. Coinbase, for example, ceased operations in Hawaii in early 2018 for requirements to hold statutory reserves.
What do you think of the Hawaii crypto program? Let us know in the comments section below.
Image credits: Shutterstock, Pixabay, Wiki Commons
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