Hawaii has changed its mind about requiring cryptocurrency companies to have payment services licenses

The project was created to create a local regulatory framework that would govern cryptocurrency companies. At the end of the project, Hawaii officials decided that cryptocurrency companies would no longer need an MTL license to operate within the state.

The DCCA clarified: companies must still be responsible for complying with federal requirements set by the Financial Crimes Enforcement Agency (FinCEN), the U.S. Securities and Exchange Commission (SEC), and the Financial Institutions Regulatory Authority (FINRA). Plus comply with consumer protection and anti-money laundering (AML) requirements.

Obtaining an MLT license requires significant investment and resources - applicants need to meet minimum capital and business plan requirements. According to law firm Dilendorf, MTL requirements vary from state to state, resulting in many inconsistencies that encourage companies to prioritize other states.

DCIL Banking Commissioner Iris Ikeda announced that it is important to make consumers aware of the risks associated with cryptocurrencies. This will now become a major focus for DCIL.

In 2022, Hawaii approved the creation of a working group to study digital currencies and blockchain. Based on the results of the research, the authorities planned to develop laws to regulate cryptoassets.