Coinbase is Back in Hawaii

Residents of Hawaii are gaining renewed access to Coinbase following state-level regulatory changes!

What’s the Scoop?

• Onerous Regulation: Coinbase exited Hawaiian markets in 2017 alongside many other CEXs after the state’s Division of Financial Institutions (DFI) imposed requirements on crypto exchanges to obtain a Hawaiian-issued money transmitter license and maintain 1:1 fiat reserves against all customer crypto assets held on the platform.
• Licensure Lifting: In 2020, Hawaii initiated a pilot program allowing some exchanges to operate under an exemption from the DFI’s requirements. This June, the department overseeing the pilot concluded that crypto exchanges do not need to register with the DFI as money transmitters to conduct their business in Hawaii.

Bankless Take:

The cessation of Hawaii’s unworkable licensing regime allows its citizens to access leading crypto exchanges. Considering that America is the land of the free, anyone who wishes to purchase crypto assets should be afforded the equal opportunity to do so.