Hawaii Ends Sandbox Program: Crypto Firms Exempt from State Money Transmitter Licenses

Hawaii’s regulatory sandbox, the Digital Currency Innovation Lab (DCIL), concludes today, eliminating the requirement for crypto companies to obtain a Hawaii-issued money transmitter license to operate within the state. 

Established in 2020 as a collaborative research project between the Hawaii Technology Development Corporation (HTDC) and the Hawaii Division of Financial Institutions (DFI), the DCIL aimed to explore and regulate digital currency activities. Following its findings, participating companies like Apex Crypto, Bitflyer USA, and Gemini can now continue transaction activities without state-level regulation. 

However, they must adhere to federal licensing and registration requirements from FinCEN, SEC, FINRA, and other relevant bodies governing consumer protection and anti-money laundering.

Clever Robot News Desk 1^st July 2024