In a landmark move, the state of Hawaii has announced that cryptocurrency enterprises are now liberated from the obligation to secure a Money Transmitter License (MTL) for operations. This declaration was made by the Hawai‘i Department of Commerce and Consumer Affairs (DCCA), which also noted the successful completion of the Digital Currency Innovation Lab (DCIL) on June 30, 2024.
Launched in 2020, the DCIL was an initiative to delve into the digital currency ecosystem in Hawaii and to evaluate the necessary regulatory structures for cryptocurrency businesses. Following the conclusion of this exploratory project, Hawaiian officials have determined that a Hawai‘i-issued MTL will not be a prerequisite for digital currency firms to engage in business within the state. This was confirmed through an official communique released on June 28.
The DCCA clarified, “These entities may proceed with their transactional operations as unregulated entities.” However, it emphasized that cryptocurrency firms must adhere to relevant federal licensing and registration mandates. These include regulations from the Financial Crimes Enforcement Network (FinCEN), the Securities and Exchange Commission (SEC), and the Financial Industry Regulatory Authority.
Moreover, the DCCA statement highlighted the necessity for compliance with federal regulations concerning consumer protection, Anti-Money Laundering protocols, among other requirements.
As the situation evolves, additional updates are anticipated to be provided.