- Coinbase expands services to Hawaii after regulatory changes ease restrictions
- Hawaii residents can now buy, sell, and stake cryptocurrencies with up to 12% APY on Coinbase.
- Coinbase still faces legal pushback from the SEC over regulatory filings
Coinbase announced it will expand its services to Hawaii, providing residents with a wider range of digital asset management options.
This comes on the heels of significant regulatory changes by the Hawaii Department of Commerce and the Department of Financial Institutions and Consumer Protection (DFI) that open new avenues for cryptocurrency business in the state.
Hawaii’s Strict Regulations
For years, Hawaii’s strict regulations have made it difficult for cryptocurrency exchanges to operate within its borders.
A particularly difficult requirement was that exchanges must maintain cash reserves equal to the value of digital assets held by their customers, effectively preventing many firms from entering the Hawaiian market.
However, these restrictions were recently relaxed as part of the Hawaii Digital Currency Innovation Lab pilot program, allowing companies like Coinbase to establish a presence in the state.
Hawaii residents can now use Coinbase.
This regulatory relaxation means Hawaii residents can now use the Coinbase platform and mobile app to buy and sell cryptocurrencies.
In addition to these services, users can also participate in cryptocurrency staking, earning up to 12% annual percentage yield (APY) on certain digital assets.
This marks a major turning point for Hawaii, where interest in cryptocurrencies is growing but opportunities have previously been limited by the state’s strict regulations.
Coinbase’s expansion into Hawaii not only expands its user base, but also underscores the state’s commitment to fostering innovation in the digital currency space, even as it struggles with the U.S. Securities and Exchange Commission (SEC) over disclosure requirements related to the application of securities laws to digital assets.