The digital asset market has seen a new viable base of operations in Hawaii, as its newly established regulations have seen the state become a burgeoning crypto hub. Indeed, the island has seen notable firms like Coinbase, MetaMask, and BitPay attracted to the welcoming regulatory environment
Hawaii issued new regulations that announced crypto companies’ operations are not to be classified as money transmissions under state law. This means that many crypto exchanges are no longer required to have a money transmitter license to operate on the island.
Source: Liberty Flagpoles
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Hawaii Emerging as Crypto Hub With New Regulations Taking Effect
The past several years have seen crypto regulation become a key issue. As the asset class has grown in popularity, nations have sought to establish their relationship with the currency. That has led to the development of various regions that are embracing the assets, and some that are not.
One that has emerged displaying the former is Hawaii, whose new regulation has the state looking to become a crypto hub. In late June of this year, the state’s Department of Commerce and Consumer Affairs Division of Financial Institutions (DEFI) ruled that crypto firms no longer needed money transmitter licenses. The move was a signal of favorable regulation for these firms.
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Such developments have already led companies like Trasnask to develop main offices there. Moreover, the company noted that they could be the first of a wave of companies looking to do the same thing. Specifically because of its encouragement of the sector’s development.
“Hawaii’s recent regulatory decision creates the potential for it to emerge as a significant crypto hub,” Transak’s US compliance officer, Bryan Keane, told CoinTelegraph. “The state’s interpretation of money transmission in regards to cryptocurrency set the stage for broader adoption, aligning well with the enthusiastic and growing Web3 community in the region.”
These firms are now freer to embrace greater offerings to users. Indeed, they no longer require third-party solutions to offer significant crypto payment services. Creating a symbiotic relationship. One where Hawaii’s economy grows, and so too do these crypto businesses.
