Cryptocurrency exchange Coinbase has started offering cryptocurrency services in Hawaii.
According to a press release shared by The Block, Hawaii residents will be able to buy, sell, and manage cryptocurrencies on Coinbase, and they can also use the exchange to stake assets and send funds internationally.
Coinbase said in a press release that it has “officially entered Hawaii following regulatory changes from the Hawaii Department of Commerce and the Division of Financial Institutions and Consumer Protection that provide clarity for cryptocurrency companies.”
According to The Block’s data dashboard, Coinbase recorded about $64 billion in cryptocurrency trading volume in July.
Hawaii’s Cryptocurrency System
As Bitcoin.com News reported at the time, Coinbase withdrew from Hawaii in 2017 because of cryptocurrency regulatory policies that required companies to hold 1:1 cash reserves for their Bitcoin holdings.
Juan Suarez, then Coinbase’s general counsel, said the policy made it “impossible” for the exchange 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 for cryptocurrency companies called the Hawaii Digital Currency Innovation Lab. Twelve companies, including cryptocurrency exchange and custodian Gemini, were allowed to offer cryptocurrency services in the state for two years without first having to obtain a state money transmitter license, The Block previously reported.
Hawaii’s Digital Currency Innovation Lab closed on June 30. According to a statement from the Hawaii government, cryptocurrency companies can still operate in the state as unregulated businesses, but must comply with federal licensing and regulatory requirements.
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About the Author
MK Manoylov has been a reporter for The Block since 2020, joining just before Bitcoin first broke $20,000. Since then, MK has written nearly 1,000 articles for the publication, covering all aspects of crypto news but with a penchant for NFTs, metaverse, web3 games, fundraising, crime, hacking, and crypto ecosystem stories. MK holds a graduate degree from the Science, Health, and Environment Reporting Program (SHERP) at New York University and has also covered health topics for WebMD and Insider. You can follow MK on X @MManoylov and on LinkedIn.