Hawaii’s recent changes to cryptocurrency regulations are drawing major crypto companies like MetaMask and Transak to the state. Both firms have started setting up offices, signalling a shift in Hawaii’s approach to the crypto industry.
No More Money Transmitter Licence Required
In June 2024, Hawaii regulators announced that crypto business activities would no longer be classified as money transmission under state law. Starting from July 1, 2024, crypto exchanges and companies no longer need a money transmitter licence to operate in Hawaii. This is different from most other US states, where such licences are still required.
Bryan Keane, US compliance officer at Transak, believes this regulatory change will bring more notable crypto firms back to Hawaii. Transak, for example, now has the freedom to offer expanded crypto payment services without the need for third-party providers.
Hawaii’s Journey to Crypto-Friendly Status
Hawaii wasn’t always seen as a welcoming place for cryptocurrency. In 2019, the state launched the Digital Currency Innovation Lab (DCIL), a sandbox program that allowed crypto companies to operate in a regulated environment. The four-year program ended in June 2024, right before the new regulations were announced.
With the new regulations in place, Hawaii is quickly becoming a hub for Web3 companies. In addition to MetaMask and Transak, other major firms like BitPay and Trust Wallet have also been drawn to the state. Transak officially launched its services in Hawaii on September 12, 2024, marking a new era for crypto businesses in the region.
