12 crypto-focused businesses are now allowed to operate in the US state of Hawaii under the Digital Currency Innovation Lab (DCIL) pilot program by the State of Hawaii.
Hawaii Technology Development Corporation (HTDC) announced the news in a press release published on Wednesday, August 19th. The notable crypto companies selected under the Digital Currency Innovation Lab (DCIL) program include Gemini, ErisX, BlockFi, and Robinhood.
DCIL program allows digital currency issuers to do business in Hawaii without obtaining a state money transmitter license. Hawaii Technology Development Corporation (HTDC) launched this program in partnership with the Hawaii Division of Financial Institutions (DFI) to spur technology-based economic development in the State.
The program started in March 2020. According to HTDC, it received applications from 19 companies and after a comprehensive analysis, 12 companies were selected to join the DCIL. The program has started on August 19, 2020, and will end on December 31, 2022. Now, these admitted digital currency issuers can conduct business in Hawaii for two without first obtaining a state money transmitter license. But companies will have to comply with other sections of the money transmitter laws.
For the duration of this program, the Division of Financial Institutions (DFI) has issued a no-action message, stating that It will not take any action against these companies, which need a money transmitter license to operate under the current statutory scheme. Out of 19 received submission, 12 companies are selected that are Apex Crypto, bitFlyer USA, BlockFi Trading, CEX.IO, Cloud Nalu, Coinme, ErisX, Flexa Network, Gemini Trust Company, Novi Financial, River Financial, and Robinhood.
However, DFI will monitor all digital currency transactions taking place in the Digital Currency Innovation Lab. The data gathered will be uses to develop local legislation around digital currency and the future of the DCIL program.
Companies not admitted in DCIL are still prohibited to allow Hawaii-based consumers access to their platforms.
Iris Ikeda, Commissioner of Financial Institutions, commented:
“We are excited to welcome our inaugural batch of participants into the DCIL. Hawaii-based consumers can look forward to a variety of options for services offered by digital currency companies in the state. I anticipate leveraging this opportunity for our state to develop a robust understanding of one of the most exciting areas in fintech. States across the nation are starting to review their laws to determine whether the digital currency companies should be regulated for the benefit of consumers.”
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