TechFlow reported on August 13 that Coinbase is once again offering cryptocurrency services in Hawaii. The exchange withdrew from the market in 2017 due to the state's strict cryptocurrency regulatory framework. Hawaii residents can now buy, sell and manage cryptocurrencies on Coinbase, and can also use the platform for asset pledge and international remittances.

“Our official entry into Hawaii is a result of regulatory changes by the Hawaii Department of Commerce and Consumer Affairs’ Division of Financial Institutions that provide clear guidance for cryptocurrency companies,” Coinbase said in a statement.

Hawaii’s cryptocurrency policy once required companies to have a one-to-one cash reserve for Bitcoin holdings, making it difficult for Coinbase to continue operating in the state. Three years later, the Hawaii Department of Financial Institutions and the Hawaii Technology Development Corporation jointly launched a regulatory sandbox called the Hawaii Digital Currency Innovation Lab, allowing 12 companies, including Gemini, to provide crypto services in the state for two years without obtaining a state money transmitter license.

Currently, the Hawaii Digital Currency Innovation Lab ended on June 30. Crypto companies can still operate in the state as unregulated businesses, but must comply with federal licensing and regulatory requirements.