Hawaii is becoming an attractive destination for major cryptocurrency companies like Coinbase and Metamask thanks to a new flexible policy that does not require a money transmitter license.
As of July 1, 2024, Hawaii officially implemented a new legal policy that does not consider the business activities of cryptocurrency companies as money transmission. This decision has created a strong boost for the cryptocurrency industry in the state, making Hawaii an attractive destination for large Web3 companies.
The new policy allows cryptocurrency exchanges and businesses to operate in Hawaii without having to apply for a money transmitter license, which is different from most other US states, where the licensing process is often complicated and expensive.
As a result, Hawaii quickly attracted the attention of big names in the industry, including Coinbase, Metamask, BitPay, and Trust Wallet.
“Hawaii’s new approach to cryptocurrency opens up a huge opportunity for growth, especially given the explosive growth of the Web3 community here,” commented Bryan Keane, Chief Compliance Officer at Transak, a Web3 payments infrastructure provider.
Transak officially launched in Hawaii on September 12, demonstrating businesses' confidence in the potential of this market.
From experimentation to breakthrough policy
Since 2019, Hawaii has been experimenting with the Digital Currency Innovation Lab (DCIL), which allows cryptocurrency companies to experiment with business models without having to comply with traditional regulations. The program ends in June 2024 and contributed to a historic decision on a new regulatory framework for the cryptocurrency industry in the state.
This change is expected to make Hawaii a major cryptocurrency hub not only in the US but also globally. According to Keane, “With a favorable regulatory landscape, Hawaii has the potential to become a key market for the cryptocurrency ecosystem, driving innovation and strategic growth in the US.”
Not only large companies, small businesses also benefit from this policy by removing regulatory barriers related to obtaining a money transmitter license. This facilitates new companies to enter the market and contributes to the sustainable development of the cryptocurrency industry in Hawaii.
