Odaily Frontline｜12 Encryption Companies Conduct Operations in Hawaii Through Regulatory Sandbox

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Summary:

• Summary:

• Hawaii has allowed Gemini, ErisX, BitFlyer USA, River Financial and eight other cryptocurrency firms to operate without money transmission licenses.

• The companies certify that they have the "capital, financial and technical expertise necessary to do business in the state."

Previously, in 2017, Hawaii imposed high demands on crypto companies, forcing them to leave the state.

In an effort to lure crypto firms back to Hawaii, Hawaii allowed 12 cryptocurrency firms to operate without money transmission licenses, including Robinhood Crypto, Gemini, ErisX, BitFlyer USA, and River Financial.

The companies are participating in a two-year pilot project, the Digital Currency Innovation Lab (Digital Currency Innovation Lab), a joint venture between the Hawaii Department of Commerce and Consumer Affairs, the Hawaii Department of Financial Institutions (DFI) and the Hawaii Technology Development Corporation (HTDC). cooperation.According to the press release, according toThe pilot program announced in March this year

, these selected companies can demonstrate that they "have the capital, financial and technical expertise necessary to do business in the state."

The Hawaii Department of Commerce and Consumer Affairs said the pilot will help "guide legislation and determine the future of digital currency activity in Hawaii."

"We are very pleased to be one of the first bitcoin businesses to legally operate in the state of Hawaii. This is a huge regulatory milestone," River Financial CEO Alex Leishman said in a statement.

The idea is to protect consumers from hackers, but it makes operating in the state prohibitively expensive for crypto companies.

In 2017,In 2017,Coinbase lawyer Juan Suarez wrote that

“This policy is clearly untenable. No digital currency business, frankly, any commercially viable enterprise has the capital to supplement every customer’s bitcoin with excess dollar collateral.”

The regulatory sandbox means crypto firms can now operate without this requirement.