Hawaii has issued a new regulation that favors crypto companies. Now, exchanges will be able to operate on the island without the money transfer license.
Hawaii and the new regulation that embraces the crypto sector
Hawaii has issued a new regulation that embraces the crypto sector, supporting companies.
According to what reported, it seems that now, crypto companies such as exchanges, will be able to operate on the island without a money transfer license.
In practice, under state law, the operations of cryptocurrency companies do not need to be classified as money transmissions.
It was established by the Department of Commerce and Consumer Affairs Division of Financial Institutions (DEFI).
Thanks to this new regulation in favor of the cryptocurrency sector, companies like Trasnask are already developing main offices in Hawaii. In this regard, Bryan Keane, head of compliance in the United States for Transak, said:
“The recent regulatory decision in Hawaii creates the potential to emerge as a significant hub for cryptocurrencies. The interpretation that the State has given to money transmission in relation to cryptocurrencies lays the groundwork for broader adoption, aligning well with the enthusiastic and growing Web3 community in the region.”
Hawaii supports crypto: a regulation to become a global industry hub
The objective of this new regulation is to become a global hub for the cryptocurrency sector.
In fact, important companies like Coinbase, MetaMask, and BitPay have been attracted by the welcoming regulatory environment.
Not by chance, without the need for licenses, crypto companies become freer to offer users a greater number of services.
This solution comes after past tests. In fact, in 2020, the Hawaii Tech Dev Corp had announced that 12 crypto-exchanges participating in the island’s pilot program would be able to operate without a license for two years.
The crypto-exchanges were Apex Crypto, BitFlayer USA, BlockFi Trading, CEX.io, Cloud Nalu, Coinme, ErisX, Fiexa Network, Gemini Trust Company, Novi Financial, River Financial, and Robinhood Crypto.
This pilot program, which ended on December 31, 2022, seems to have given Hawaii the opportunity to formalize the new regulations for all crypto companies.
The case of the United Kingdom
Besides Hawaii, there are many countries that decide to open up to crypto also at the regulatory level.
Recently, in the United Kingdom, a new bill was introduced in Parliament, which clarifies the legal status of cryptocurrencies and their regulation.
The proposal aims to consider crypto as personal property, including all digital assets such as Bitcoin and altcoins, tokens, and NFTs.