- Thanks to updated regulatory clarity, Coinbase will once more be accessible to residents of the 50th state.
Hawaii residents will once more be allowed to use Coinbase, the business announced on Wednesday. For years, the state’s long-standing regulations have barred residents from accessing most cryptocurrency exchanges.
Faryar Shirzad, chief policy officer of Coinbase, said in a statement that “we can now bring our products and services to Hawaii and empower residents to participate in the crypto economy” thanks to recent state regulatory changes that have paved the way.
In 2017, the company left Hawaii because to strict regulations imposed by the Division of Financial Institutions (DFI) of the state. These regulations required cryptocurrency companies applying for a license to operate in Hawaii to keep fiat currency reserves equal to the value of all cryptocurrency owned on the platform.
In a piece that is no longer accessible, Coinbase had stated at the time that doing so would be “impractical, costly, and inefficient.”
Then, Coinbase legal representative Juan Suarez noted that no digital currency company—and, to be honest, no financially viable firm anywhere—has the resources to supplement every customer’s Bitcoin with unnecessary cash collateral.
Over a number of years, state legislators tried to pass laws to clarify cryptocurrency restrictions, but most exchanges followed Coinbase’s example, preventing the majority of Hawaii citizens from using mainstream cryptocurrency services. Nothing reached the governor’s desk.
In the interim, the state established a pilot program that granted specific cryptocurrency companies and exchanges permission to operate in the state without having to obtain a DFI exemption.
Gov. Josh Green of Hawaii, however, said in January that the experimental program will terminate on July 30. Along with it, the state’s initiatives to regulate cryptocurrency independently.
The governor’s office stated at the end of June that the project’s findings show that digital currency companies won’t need a money transmitter license provided by Hawaii in order to operate within the state. The businesses will be permitted to carry on with transaction activities as unregulated enterprises.
Coinbase provided officials in Hawaii with a complimentary announcement today.
We’ve worked hard with local authorities to make sure we can join the Hawaii market, and we appreciate their responsible, creative approach, which is in line with our objective of giving everyone a secure and compliant workplace, according to Shirzad.
The reason Robinhood extended its services to Hawaii last month was also attributed to the state’s decision to waive its licensing requirements.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
