Cryptocurrency enterprises in Hawaii are now officially free from the obligation to obtain a Money Transmitter License (MTL) in order to operate within the state. The Hawai‘i Department of Commerce and Consumer Affairs (DCCA) notified the public that the state concluded the collaborative crypto research initiative known as the Digital Currency Innovation Lab (DCIL) on June 30, 2024.
Initiated in 2020, the DCIL project aimed to delve into the realm of digital currency activities within the state and evaluate the regulatory framework necessary for companies involved in cryptocurrency. Following the completion of the project, Hawaiian authorities declared that digital currency firms no longer need an MTL issued by Hawaii to conduct their business within the state, as stated in an official announcement released on June 28.
According to the DCCA’s statement, these companies will be permitted to continue their transaction activities as unregulated entities, while still being accountable for adhering to any relevant federal licensing or registration obligations. Such obligations will encompass requirements stipulated by entities such as the Financial Crimes Enforcement Network (FinCEN), the Securities and Exchange Commission (SEC), and the Financial Industry Regulatory Authority.
Furthermore, compliance will entail meeting “any pertinent federal regulatory requirements involving consumer protection,” as well as Anti-Money Laundering measures and other stipulations outlined in the statement. As this is an evolving situation, additional details will be provided as they emerge.