US state Hawaii has recently accepted cryptocurrency exchanges including Gemini, Bitflyer, ErisX, Robinhood, and eight others to operate even without money transmitter licenses.
The announcement, which came August 19, said that the state’s Division of Financial Institutions (DFI) will issue a “no action message” against cryptocurrencies included in its cryptocurrency sandbox. However, they are still expected to “comply with other sections of the money transmitter laws.”
This move, in partnership between the DFI and the Hawaii Technology Development Corporation (HTDC), came as part of the two-year cryptocurrency pilot of the said state, which aims to make cryptocurrencies more accessible to its citizens.
For crypto companies to operate freely in the aforementioned state, they must have an equal amount of fiat currency such as USD to the number of crypto assets they have respectively.
Companies included in the two-year sandbox expressed their excitement at the said announcement. Gemini said that it is “thrilled to have the opportunity to bring a simple, elegant, and secure crypto solution to the people of Hawaii.”
CEO of River Financial Company Alex Leishman also said that this is a “huge milestone” to the entire company.
Hawaii started accepting applications for its cryptocurrency sandbox from March 17 to May 1. Its program started to run on August 19 and will end on December 31, 2022.
However, the state had previously issued high demands on crypto firms in 2017, which aimed to protect consumers from unexpected cyberattacks or scams. However, many cryptocurrencies felt the demands were too high, causing them to move out their operations to somewhere else.