April 25, 2024

In Hawaii will launch a regulatory "sandbox" for cryptocurrency companies

Authorities in the US state of Hawaii plan to launch a regulatory sandbox for companies producingand working with digital currencies.

The official statement talks about the creationDigital Currency Innovation Lab, a two-year initiative that will allow digital currency companies to operate in Hawaii without needing a state financial services license.

The state governor emphasized that duringactions of the sandbox, he hopes to gain a wider understanding of digital currencies and their capabilities. Moreover, in the future, in Hawaii, digital currencies can be legalized.

“The information that we will receive during the initiative will help us determine the future of digital currencies in Hawaii,” the statement said.

Companies will be able to apply for participation already fromMay 1, 2020. However, to approve the application, firms need to demonstrate high knowledge of both finance and technology, as well as possess the necessary capital.

The program was the result of cooperationDepartment of Commerce, Division of Financial Institutions and Hawaii Technology Development Corporation. At the same time, companies participating in the “sandbox” will not be subject to investigation by regulators if any violations are discovered.

Recall that in January, several Hawaii state legislators proposed allowing local banks to hold “digital securities,” “virtual assets,” and other “public blockchain tokens.”