Hawaii Pushes Out New Digital Currency Regulatory Sandbox to Boost Crypto Growth

The government of Hawaii has recently announced its establishment of a regulatory sandbox for digital currency companies. The partnership between the Department of Commerce and Consumer Affairs, Division of Financial Institutions (DFI) and Hawaii Technology Development Corporation (HTDC) will see the launch of Hawaii’s first pilot program aimed for digital currencies.

The official announcement stated that the establishment of its “Digital Currency Innovation Lab” is a two-year initiative that would enable digital currency issuers to conduct business operations in Hawaii without a money transmitter license approved by the state. 

With the new initiative, the government expects to gain more understanding and perspective on digital currency and its related activities during the two-year period. New legislation would also be considered during this time. The announcement stated that the regulators would consider the capital brought in by startups. 

The statement read, “The insights attained will be used to guide legislation and determine the future of digital currency activity in Hawaii.”

Applications have been made available online since March 17 and will be available until May 1, 2020. The DFI mentioned that the businesses that are currently extending money transfer services without a valid registration will also be allowed to be part of the scheme, and will be let off the hook. 

Earlier this month, Zimbabwe also announced a crypto regulatory sandbox in an effort to streamline activities in the crypto industry and boost its economy during this time. Russia also expressed its interest in stablecoins in December 2019 and has started experimenting with stablecoins in the regulatory sandbox. 

Image via Shutterstock