Originally published on: September 12, 2024
The cryptocurrency landscape is undergoing a major shift, with Hawaii emerging as a new hub for crypto companies following groundbreaking regulatory changes. Firms like MetaMask and Transak are leading the charge by setting up offices in the Aloha State.
In a landmark decision, Hawaii regulators recently announced that crypto business activities would no longer be classified as money transmission under state law. This change, effective as of July 1, 2024, eliminates the requirement for cryptocurrency exchanges and firms to obtain a money transmitter license to operate in Hawaii, setting it apart from most US states.
Bryan Keane, US compliance officer at Transak, believes that this regulatory change will attract many prominent crypto firms to Hawaii. Keane stated, “The new regulatory development is a welcome sign for companies like Transak, allowing us to offer more comprehensive crypto payment services in the state without relying on third-party solutions.”
While Hawaii was not always considered a crypto-friendly region, the establishment of the Digital Currency Innovation Lab (DCIL) in 2019 signaled a shift towards crypto acceptance. The conclusion of the four-year regulatory sandbox initiative in June paved the way for the recent regulatory update that has drawn in companies like Metamask, BitPay, and Trust Wallet.
Transak, a prominent Web3 payment infrastructure provider, is set to officially launch in Hawaii on Sept. 12, marking a significant milestone for the state’s growing crypto ecosystem.
According to Keane, Hawaii’s new regulatory framework could position it as a key player in the global crypto economy. The simplified regulatory process could make the state particularly attractive to small businesses looking to navigate the complexities of obtaining a money transmitter license in the US.
Coinbase, a leading cryptocurrency exchange, has already expanded its services to Hawaii in response to the more accommodating regulatory environment. With industry giants flocking to the Aloha State, Hawaii is on track to become a crypto powerhouse with far-reaching implications for the industry.
Don’t miss out on the Hawaii crypto revolution – stay tuned for more updates on this rapidly evolving landscape!
