TechFlow news — On August 13, according to The Block, Coinbase has resumed offering cryptocurrency services in Hawaii. The exchange had exited the state in 2017 due to Hawaii's strict cryptocurrency regulatory framework. Now, residents of Hawaii can buy, sell, and manage cryptocurrencies on Coinbase, as well as use the platform for staking assets and international money transfers.
In a statement, Coinbase said: "Our official return to Hawaii comes following regulatory changes from the Division of Financial Institutions at the Hawaii Department of Commerce and Consumer Affairs, which now provides clear guidance for cryptocurrency companies."
Hawaii’s prior crypto policy required companies to maintain a one-to-one cash reserve for every Bitcoin held, making it difficult for Coinbase to operate in the state. Three years later, the Division of Financial Institutions and the Hawaii Technology Development Corporation jointly launched a regulatory sandbox called the "Hawaii Digital Currency Innovation Lab," allowing 12 firms including Gemini to offer crypto services in the state without obtaining a state money transmission license for a two-year period.
The Hawaii Digital Currency Innovation Lab concluded on June 30. Crypto companies may still operate in the state as unregulated businesses but must comply with federal licensing and regulatory requirements.
