- Crypto enterprises would no longer need a MTL to do business inside the state.
- DCCA noted that the firms may keep doing business as usual as unregulated entities.
A Money Transmitter License (MTL) is no longer necessary for cryptocurrency businesses in Hawaii to operate legally. On June 30, 2024, the state of Hawaii’s Digital Currency Innovation Lab (DCIL), a collaborative crypto research initiative, ended, according to the state’s Department of Commerce and Consumer Affairs (DCCA).
Launched in 2020, DCIL sought to investigate the state’s digital currency ecosystem and evaluate the necessary regulatory environment for crypto-related businesses.
In an official statement released on June 28, Hawaii officials declared that digital currency enterprises would no longer need a Hawai’i-issued MTL to do business inside the state once the project is completed.
Industry Regulations Applicable
In the statement, DCCA noted that the firms may keep doing business as usual as unregulated entities. But that crypto enterprises should still be aware of and meet any federal licensing or registration requirements that may be in place.
Moreover, standards established by the Financial Industry Regulatory Authority (FINRA), the Securities and Exchange Commission (SEC), and the Financial Crimes Enforcement Network (FinCEN) will be among these guidelines.
According to the statement, compliance also includes all applicable federal regulatory standards. Such as those pertaining to consumer protection and anti-money laundering procedures. Legal requirements for the licencing of money transmitters are a component of the federal statutes and regulations. That control the security of the payment system in the 48 states of the United States.
Maintaining acceptable investments, a minimum net worth, a business strategy, and a compliance program are all necessary investments and resources for obtaining the MLT license. Furthermore, several crypto firms have been collaborating with authorities to get MLT licenses in a number of US states.
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