Hawaii Grants Exemption to Cryptocurrency Companies from Acquiring a Money Transmitter License

Hawaii Grants Crypto Firms Exemption from Money Transmitter License


By Jimmy Aki
Published: July 1, 2024, 12:40 EDT
|
Reading Time: 2 min


Hawaii has announced that cryptocurrency firms will no longer be required to obtain a money transmitter (MT) license, effective June 28. However, these firms are still obligated to adhere to federal regulations.
The exemption for Hawaiian crypto firms from the MT license is a result of the completion of the regulatory sandbox initiative, the Digital Currency Innovation Lab (DCIL), which concluded on June 30. This means that digital currency activities in Hawaii are no longer governed by Chapter 489D of the Hawaii Revised Statutes or any other statutes under the Hawaii Division of Financial Institutions (DFI).
The Department of Commerce and Consumer Affairs (DCCA) and the Hawaii Technology Development Corporation (HTDC) made the joint announcement about this significant development.
Even though Hawaiian crypto firms are no longer required to obtain a state-issued MT license, they must still comply with federal regulations. The HTDC has emphasized that participants of the DCIL and other companies engaging in digital currency activities in Hawaii must adhere to federal licensing and registration requirements set by agencies such as the Financial Crimes Enforcement Network (FinCEN), the Securities and Exchange Commission (SEC), and the Financial Industry Regulatory Authority (FINRA). Additionally, they must also comply with relevant federal regulatory measures concerning consumer protection and anti-money laundering (AML) protocols.
By exempting crypto firms from the MT license, Hawaii aims to bypass regulatory inconsistencies and barriers, making it easier for these companies to innovate and thrive in the state’s digital currency market. However, consumers are advised to remain vigilant against potential scams, as there has been an increase in impersonation scams in Hawaii, with scammers posing as law enforcement to steal cryptocurrency. The FBI has also warned about con artists using social media to pose as attorneys from fictitious law firms, promising to recover lost funds. Victims of crypto scams reported losses of $9.9 million between February 2023 and February 2024 to the FBI’s Internet Crime Complaint Center (IC3).
Follow Us on Google News