Coinbase has finally returned to Hawaii thanks to some new regulatory changes. The island’s strict regulations had kept companies like Coinbase at bay since 2017, but that’s changed.
But today, the Hawaii Department of Commerce and Consumer Affairs Division of Financial Institutions (DFI) decided it was time to ease up, and Coinbase was quick to jump on the opportunity.
In their words, they’re “excited to deliver on that promise today.”
What was Hawaii’s beef with crypto?
Hawaii hasn’t always been the friendliest place for cryptocurrency. Back in the day, the state required a Money Transmitter License (MTL) for any company dealing in crypto.
This was a massive block, and Coinbase, along with other major crypto companies, decided it wasn’t worth the hassle and pulled out in 2017.
But things started to change in 2020. The state launched the Digital Currency Innovation Lab (DCIL), an initiative that was all about finding a middle ground. They wanted to protect consumers but also give crypto companies a fair shot.
The DCIL brought together various stakeholders, including the Hawaii Department of Commerce and Consumer Affairs (DCCA), to figure out what needed to change. And change it did.
In January this year, the DCCA made an announcement that cryptocurrency firms would no longer need that dreaded MTL to operate in Hawaii. This was huge.
Companies could now operate without the heavy burden of state-level licensing, as long as they still played by the federal rules. This was the green light Coinbase and others had been waiting for.
Hawaiians can now trade cryptocurrencies like Bitcoin, Ethereum, and more without jumping through hoops. But it doesn’t stop there. Coinbase is also bringing staking services to the table.
For those unfamiliar, staking is a way to earn interest on your crypto holdings. Instead of letting your coins sit idle, you can put them to work, helping to secure the network and earn rewards in the process.
This newfound openness could attract other digital currency businesses, turning Hawaii into a new hub for crypto innovation. This shift isn’t just about Coinbase; it’s about the broader acceptance of digital assets in Hawaii.
