As was stated by members of the State House of Representatives from the Democratic Party, the Department
As was stated by members of the State House of Representatives from the Democratic Party, the Department of Commerce and Consumer Affairs must review the requirements for virtual asset service provider (VASP).
Currently, crypto companies are required to hold fiat reserves equivalent to the value of digital assets that their clients hold. Lawmakers called the rule "too onerous" for the VASP and called for it to be lifted.
"The reserve requirements that apply to cryptocurrency companies in Hawaii are inconsistent with those of other states", document stated.
In 2017, Bitcoin exchange Coinbase suspended customer service in Hawaii. According to the platform, the regulator's reserves requirement has created an unbearable financial burden for the company.
As a reminder, in March 2020, Hawaii launched the Digital Currency Innovation Lab pilot program, under which businesses were able to issue digital assets without a license to provide payment services.