Regulatory Body Decrees Hawaii Cryptocurrency Firms Exempt from MT Licensing

Cryptocurrency firms in Hawaii have been granted an exemption from the need to obtain a Money Transmitter License (MTL) in order to operate in the state. The Hawai‘i Department of Commerce and Consumer Affairs (DCCA) announced the conclusion of the Digital Currency Innovation Lab (DCIL) on June 30, 2024. Launched in 2020, the DCIL aimed to explore digital currency activity in the state and determine the necessary regulatory framework for crypto-related companies. As a result of the project, Hawaiian authorities have decided that digital currency companies will no longer need a Hawai‘i-issued MTL to conduct business in the state. However, these companies will still be required to comply with relevant federal licensing and registration requirements, including those set by the Financial Crimes Enforcement Network (FinCEN), the Securities and Exchange Commission (SEC), and the Financial Industry Regulatory Authority. Compliance will also involve adhering to federal regulations for consumer protection, Anti-Money Laundering measures, and other applicable requirements. This is an ongoing story, and more information will be provided as it becomes available.