Cryptocurrency

Cryptocurrency firms in Hawaii are now officially exempt from the requirement to receive a Money Transmitter License (MTL) to operate in the state.
The Hawaii Department of Commerce and Consumer Affairs (DCCA) <a href="https://cca.hawaii.gov/dfi24/digital-currency-innovation-lab/" target="_blank" rel="noopener nofollow">informed</a> the public that the state concluded the collaborative crypto research project Digital Currency Innovation Lab (DCIL) on June 30.
Initiated in 2020, DCIL aimed to explore the landscape of digital currency activity within the state as well as assess the regulatory framework required for crypto-related companies.
<h2 data-ct-non-breakable="true" id="firms-still-must-comply-with-sec-and-fincen-regulations">Firms still must comply with SEC and FinCEN regulations</h2>
After completing the project, Hawaii authorities ruled that digital currency companies will no longer require a Hawaii-issued MTL to conduct business within the state, according to an official statement published on June 28.
“The companies will be able to continue transaction activity as an unregulated business,” DCCA said in the statement, adding that crypto companies will still be responsible for complying with any applicable federal licensing or registration requirements.
Such requirements will include those set forth by the Financial Crimes Enforcement Network, Securities and Exchange Commission, and Financial Industry Regulatory Authority. 
Additionally, compliance will involve “any pertinent federal regulatory requirements involving consumer protection,” Anti-Money Laundering measures and others, the statement notes.
<h2 data-ct-non-breakable="true" id="receiving-an-mtl-license-requires-significant-resources">Receiving an MTL license requires significant resources</h2>
State money transmitter licensing laws are part of the United States federal laws and regulations governing the safety and integrity of the payment system in 48 states.
Obtaining the MLT license <a href="https://dilendorf.com/fintech-lawyers/money-transmitter-licensing.html" target="_blank" rel="noopener nofollow">requires</a> significant investment and resources, such maintenance of permissible investments, minimum net worth, business plan and a compliance program. According to Dilendorf Law Firm,&nbsp;MTL requirements vary state-by-state, which creates a lot of inconsistency and pushes businesses to prioritize some states.
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-07/c16779fa-5833-40e1-8de0-5d161fadc033.png">
 <figcaption style="text-align: center;">
 General MTL licensing requirements. Source:&nbsp;Dilendorf Law Firm
 </figcaption>
</figure>
Crypto payment gateway Alchemy Pay, for instance, has been actively working with regulators to <a href="https://cointelegraph.com/news/crypto-payment-firm-alchemy-pay-arkansas-license">secure MLT licensing in multiple U.S. states</a>.
<h2 data-ct-non-breakable="true" id="hawaii-calls-for-increasing-awareness-of-crypto-related-risks">Hawaii calls for increasing awareness of crypto-related risks</h2>
DCIL banking commissioner Iris Ikeda emphasized the importance of ensuring that consumers are aware of the risks associated with cryptocurrencies.
“We urge the public to stay informed when utilizing any form of digital currency,” Ikeda said, adding that spreading awareness on crypto-related risks will be the main focus of the authority as it shifts from the study to a broader understanding of digital currency.
Related: <a href="https://cointelegraph.com/news/united-states-fbi-reward-onecoin-cryptoqueen">US State Dept offers $5M reward for OneCoin ’Cryptoqueen’</a>
The statement mentioned that the Federal Bureau of Investigation recently <a href="https://www.ic3.gov/Media/Y2024/PSA240624" target="_blank" rel="noopener nofollow">warned</a> the public against a new emerging criminal scheme to further defraud cryptocurrency scam victims. Issued on June 24, the FBI’s warning strongly recommended consumers be wary of advertisements for crypto recovery services, keep private information safe, and not send money.&nbsp;
Previously, the <a href="https://cointelegraph.com/news/fbi-warning-crypto-money-transmitter-appears-aimed-samouri-wallet">FBI also issued an alert</a> advising the public against using crypto money transmitting services that are not registered as Money Services Businesses.
Magazine: <a href="https://cointelegraph.com/magazine/ethereum-phishing-drainers-ton-bitcoin/">As Ethereum phishing gets harder, drainers move to TON and Bitcoin</a>

Hawaii crypto firms no longer need MT license, regulator rules

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Cointelegraph

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