Hawaii to Allow More Crypto Companies Join Regulatory Sandbox

Hawaii, a historically restrictive Island, is accepting more crypto companies in its no license necessary digital currency sandbox.

The Digital Currency Innovation Lab (DCIL) application opened Monday, allowing more Cryptocurrency Exchange and crypto service providers in Hawaii.

Regulations require crypto companies to maintain cash reserves equivalent to their digital currency holding. However, the sandbox exempts participants from that requirement and from acquiring the usual money transmitter license through June 2022.

Responding to Coindesk, BlockFi CEO Zac Prince said, “The process has been seamless.” BlockFi is one of the 11 inaugural sandbox members who received a “no-action letter” from Hawaii’s Division of Financial Institutions.

“COVID-19 hampered the program’s debut last March. But the excitement this time around is palpable”, according to Hawaii Technology Development Corporation acting executive director Len Higashi, who oversees DCIL alongside DFI and the Department of Commerce and Consumer Affairs, in press time.