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02/07/24
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Crypto Companies Do Not Need Money Transmitter License to Operate in Hawaii
Crypto companies in Hawaii no longer need to obtain a Money Transmitter License (MTL) to operate in the state. On June 30, an official statement from the Hawaii Department of Commerce and Consumer Affairs (DCCA) expressed the conclusion of the collaborative cryptocurrency research project Digital Currency Innovation Lab (DCIL).
The authorities started DCIL four years ago towards exploring the ecosystem of digital currency activity in Hawaii and assessing the regulatory framework required for firms offering services related to crypto.
They completed the project, determining that digital currency firms do not need to apply to receive an MTL to carry out business, noting that they will be able to “continue transaction activity as an unregulated business.” However, they are still required to comply with any applicable federal licensing or registration requirements.
Requirements established by the Financial Industry Regulatory Authority, Securities and Exchange Commission, and the Financial Crimes Enforcement Network are still necessary to uphold. The official statement said they need to comply with “any pertinent federal regulatory requirements involving consumer protection,” Anti-Money Laundering (AML) measures and more.
U.S. federal laws and regulations stipulate money transmitter licensing laws for states to govern the integrity and safety of the payment system. Entities interested in obtaining an MLT license need remarkable investment and resources, including maintenance of permissible investments, minimum net worth, business plan as well as a compliance program.
In the words of DCIL banking commissioner Iris Ikeda, it is important to ensure that consumers are informed about the risks related to crypto, so the authorities are focused on spreading awareness about them.
“We urge the public to stay informed when utilizing any form of digital currency,” said Ikeda. The Federal Bureau of Investigation’s recent warning regarding the emergence of malicious schemes to further swindle people via crypto was mentioned in the statement.
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