Financial regulators in Hawaii have introduced a regulatory sandbox for cryptocurrency businesses in the State as a way of developing clear-cut laws for the emerging digital economy.
Two-Year Sandbox for Cryptocurrency Firms in Hawaii
Hawaii’s governor’s office released a press statement on Tuesday (March 17, 2020) announcing the creation of the regulatory sandbox for cryptocurrency firms. The new regulatory sandbox is the direct result of the collaboration between the Division of Financial Institutions (DFI) — the State’s financial regulators, and technology stakeholders.
Commenting on the decision, Iris Ikeda, Hawaii’s Commissioner of Financial Institutions, remarked:
“DFI is leveraging its statutory authority to provide an innovative way to introduce digital currency issuers into the State of Hawaii, while ensuring the safety of our consumers. By acknowledging digital currencies as a transmission vehicle of the future, we will be able to craft legislation that is conducive to its development in Hawaii.”
According to Ikeda, participating cryptocurrency businesses in the regulatory sandbox will be able to operate without having to comply with some of the State’s more stringent financial laws. For example, Ikeda revealed that crypto firms that would otherwise have to register as money transmitters will be free from such compliance requirements once they are admitted into the sandbox program.