Coinbase, one of the largest cryptocurrency exchanges in the world, has made a return to Hawaii after a seven-year hiatus.
This move follows the state’s decision in June 2024 to lift the requirement for cryptocurrency firms to obtain a money transmitter (MT) license, a regulatory hurdle that had previously forced Coinbase to cease operations in Hawaii in 2017.
This regulatory shift marks a pivotal moment in Hawaii’s evolving relationship with digital currencies, opening new doors for residents to engage in the rapidly growing crypto economy.
Compliance with federal regulations remains a priority
When Coinbase exited Hawaii in 2017, it was due to the stringent licensure requirements imposed by the Hawaii Department of Commerce and Consumer Affairs Division of Financial Institutions (DFI).
These regulations made it difficult for cryptocurrency exchanges to operate profitably in the state, leading to Coinbase’s withdrawal.
However, Hawaii’s recent decision to relax these rules reflects a broader effort to create a more favorable environment for digital currencies.
By removing the MT license requirement, the state has simplified the operational landscape for cryptocurrency firms, signaling a progressive approach to financial innovation.
Despite the removal of the MT license requirement, compliance with federal regulations remains a priority.
Coinbase’s return to Hawaii is accompanied by a renewed commitment to adhering to these standards, ensuring that the platform operates within a secure and legal framework while offering efficient services to its users.
Faryar Shirzad, Coinbase’s chief policy officer, praised Hawaii’s DFI for its forward-thinking approach, highlighting that the state’s updated regulatory stance is a positive step towards making financial services more accessible and affordable for residents.
Up to 12% annual percentage yield on popular assets
With its return to Hawaii, Coinbase is introducing a comprehensive platform designed to cater to both novice and experienced cryptocurrency users.
The platform allows residents to buy, sell, and manage a wide range of digital assets, including Bitcoin, Ethereum, and a variety of altcoins.
One of the most attractive features for Hawaii users is the staking option, which enables users to earn rewards by participating in the network maintenance of specific cryptocurrencies.
Coinbase offers up to a 12% annual percentage yield (APY) on popular assets, providing a significant incentive for those looking to grow their digital portfolios.
Additionally, Coinbase users in Hawaii can take advantage of the recurring buy feature, which automates investments by allowing users to schedule regular purchases of their chosen cryptocurrencies.
This feature is particularly beneficial for those who prefer a hands-off approach to investing, as it eliminates the need for constant market monitoring.
For more active traders, Coinbase offers access to over 500 spot pairs with 0.0% maker fees, along with advanced charting tools powered by TradingView and APIs for customized trading experiences.
As Hawaii continues to evolve its approach to digital assets, other cryptocurrency firms may follow Coinbase’s lead, further expanding the state’s digital economy.
The increased accessibility and availability of cryptocurrency services in Hawaii could drive greater adoption of digital currencies among residents, contributing to the growth of the state’s digital economy.
The post Coinbase resumes operations in Hawaii after 7-year hiatus: Here’s what you need to know appeared first on Invezz
