Hawaii is establishing a regulatory sandbox for digital currency issuers


The government of Hawaii unveiled a regulatory sandbox for digital currency firms on Tuesday.

The state announced the establishment of its "Digital Currency Innovation Lab" a two-year initiative that allows digital currency issuers to do business in Hawaii without a state money transmitter license. The governor's statement said it hopes to gain more perspective on digital currency and its activities through the two-year period, with an eye towards crafting legislation.

"The insights attained will be used to guide legislation and determine the future of digital currency in Hawaii," said the statement.

Companies are now able to apply for the Digital Currency Innovation Lab through May 1, 2020. However, selected participants will have to demonstrate financial and technical expertise, as well as hold the necessary capital, according to the statement.

The program stems from a partnership between state agencies, namely the Department of Commerce and Consumer Affairs, the Division of Financial Institutions (DFI) and Hawaii Technology Development Corporation (HTDC). 

DFI has also issued a "no action message," according to Commissioner Iris Ikeda. This means companies conducting unlicensed money transmission in Hawaii are off the hook if they're part of the program. DFI won't take action against participants under the scheme.

Ultimately, the two-year program is an effort to guide future policy. Insights from the program could also open the door to further steps towards crypto, according to HTDC's acting executive director Len Higashi. The pilot program has the potential to position Hawaii as an early adopter of cryptocurrency, according to Higashi.

Trending Stories

Get Your Crypto
Daily Brief

Delivered daily, straight to your inbox.

Digital asset economy fuels instant settlements innovation

Today the always-on demands of online markets have to be matched with the ability to access opportunities instantly and with no limits. Historically correspondent banks would move large sums of money for those needing to transfer funds while creating bottlenecks of unnecessary friction.
Read Full Story
Sponsored Post

Layer-2 Scaling Solutions: A Framework for Comparison - Commissioned by Polygon

Ethereum had a breakout year in 2021. It’s native asset, ETH’s, market capitalization surpassed $500 billion for the first time. Its network facilitated upwards of $7 trillion value transfer. Non-fungible tokens (NFTs) emerged as another “killer application” that have put its technology on the global stage and caught the attention of the masses.
Read Full Story
May 5, 2022, 3:17PM UTC