Coinbase has set its feet back in Hawaii after a seven year break. The crypto exchange credits its return to new regulations in the state. This comeback will allow Hawaiian residents to use Coinbase’s full range of crypto services again.
Why Did Coinbase Leave Hawaii?
In 2017, Coinbase left Hawaii because of strict financial rules set by the state’s Division of Financial Institutions (DFI). Back then, cryptocurrency companies needed a money transmitter license and had to keep cash reserves equal to the value of all cryptocurrencies held for customers. These rules made it hard for Coinbase and other companies to operate, leading to their exit from the state.
How is Coinbase Back?
In June 2024, Hawaii’s Department of Commerce and Consumer Affairs (DCCA) announced that cryptocurrency businesses no longer need a money transmitter license to operate in the state. This shift in policies have provided crypto companies like Coinbase a chance to re-enter the Hawaiian market. With Coinbase’s comeback, the crypto community of Hawai can now enjoy a large variety of crypto services offered by the crypto exchange. These services include trading, staking and access to over 500 crypto trading pairs with advanced features. In his X post, Paul Grewal, the Chief Legal Officer of Coinbase, shared a blog post with this update.
What This Means for Crypto in Hawaii
Hawaii’s new rules show a big shift in the state’s approach to cryptocurrency. For years, strict regulations held back the growth of the crypto industry in Hawaii. The removal of strict regulations for crypto in Hawai shows that the state is now more open for digital technology.
Future of Crypto in Hawaii
Coinbase’s return is a big win for both the company as well as Hawaii’s residents. This lets the state people be more involved in the global crypto economy. This shift in regulations looks like influenced from the crypto trend in U.S. politics.
As Hawaii continues to update its approach to cryptocurrency, the state is likely to play a bigger role in the global crypto ecosystem. This offers residents new opportunities to engage with this fast growing industry. The comeback of Coinbase to Hawaii is a positive sign for the exchange as well whole crypto community amisds SEC always bringing new issues to light.