Hawaii Lifts Money Transmitter License Requirement for Crypto Firms
Summary:
Hawaii has officially waived the requirement for cryptocurrency firms to secure a Money Transmitter License (MTL) for conducting business in the state. The announcement, made by the Hawai‘i Department of Commerce and Consumer Affairs, came after the conclusion of the Digital Currency Innovation Lab research project. As a result, crypto companies can operate as unregulated entities, although they must still comply with federal licensing or registration obligations.
Hawaii has officially lifted the mandate for cryptocurrency companies to hold a Money Transmitter License (MTL) for operations within the state. Notification of this change was announced by the Hawai‘i Department of Commerce and Consumer Affairs (DCCA), subsequent to the conclusion of the state's Digital Currency Innovation Lab (DCIL) research initiative, which ended on June 30, 2024. The DCIL project, kickstarted in 2020, was a comprehensive survey of cryptocurrency activity in the state, as well as an evaluation of the proper regulatory structure for crypto businesses. After the completion of the project, Hawaiian officials confirmed that a Hawai‘i-issued MTL will no longer be necessary for digital currency firms operating in the state, as per an official announcement released on June 28. “These companies can proceed as unregulated entities,” commented the DCCA, nonetheless highlighting that crypto firms must still adhere to any relevant federal licensing or registration obligations. These obligations may include those stipulated by the Financial Crimes Enforcement Network (FinCEN), the Securities and Exchange Commission (SEC), and the Financial Industry Regulatory Authority. Further, they may be obliged to comply with "any relevant federal regulatory requirements regarding consumer protection" as well as Anti-Money Laundering directives and other regulations, as pointed out in the statement. As the situation continues to evolve, regular updates will be provided.
Published At
7/1/2024 11:34:56 AM
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