Update Aug. 14, 6:30 am UTC: This article has been updated to add commentary from Coinbase’s chief policy officer.
Coinbase, a centralized cryptocurrency exchange, has announced the expansion of its services to Hawaii, allowing residents to buy, sell and manage their digital assets.
According to a press release shared with Cointelegraph, the development follows substantial regulatory changes by Hawaii’s Department of Commerce and Consumer Affairs Division of Financial Institutions (DFI).
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 “We’ve worked diligently with local authorities to ensure we can enter the Hawaii market, and welcome their innovative, responsible approach, which aligns with our goal of providing a safe and compliant environment for all.“
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Related: <a href="https://cointelegraph.com/news/coinbase-sec-crypto-exchange-proposal-challenge" rel="noopener noreferrer nofollow">Coinbase finds flawed analysis in SEC's proposed exchange definition</a>
<h2 data-ct-non-breakable="true" id="implications-for-hawaii-residents">Implications for Hawaii residents</h2>
The press release states that Hawaiian residents can now access Coinbase’s platform and use its respective app to gain exposure to “hundreds of cryptocurrencies.”
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 “Hawaii customers now have access to a suite of crypto services, including staking, where they can earn up to 12% APY in staking rewards on popular assets.”
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The press release also stated that residents can transfer their assets “internationally” after years of expressing “a strong interest in crypto on Coinbase.”
Related: <a href="https://cointelegraph.com/news/coinbase-expand-vaults-secure-crypto-custody-executive" rel="noopener noreferrer nofollow">Coinbase to expand use of Vaults for secure crypto custody — Executive</a>
<h2 data-ct-non-breakable="true" id="hawaii-regulatory-changes">Hawaii regulatory changes</h2>
Hawaii has previously had restrictive regulations for crypto businesses, making it difficult to operate crypto-related services in the state.
The state’s requirement that crypto exchanges maintain cash reserves equal to the value of digital assets held by customers effectively made it nearly impossible for crypto businesses to operate in the state.
The DFI relaxed these regulatory restrictions as part of the Hawaii Digital Currency Innovation Lab pilot program, which was launched to remove the reserve requirement.
Speaking with Cointelegraph, Faryar Shirzad, chief policy officer at Coinbase, explained that the “recent state regulatory changes paved the way for Coinbase” to deliver its services to Hawaii.&nbsp;
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 “We’re pleased Hawaii residents can now participate in the crypto economy, including buying, selling, managing, and staking crypto.”
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Related: <a href="https://cointelegraph.com/news/ark-buy-coinbase-bitcoin-below-50k" rel="noopener noreferrer nofollow">Cathie Wood’s ARK resumes Coinbase buying as BTC drops below $50K</a>
<h2 data-ct-non-breakable="true" id="coinbase-vs-sec-pushback">Coinbase vs. SEC pushback</h2>
On Aug. 5, the US Securities and Exchange Commission&nbsp;<a href="https://cointelegraph.com/news/sec-pushes-back-against-coinbase-overly-broad-discovery-requests" rel="noopener noreferrer nofollow">filed a motion to deny Coinbase’s efforts</a> to reveal certain documents, including SEC internal and external emails.
The SEC argued that the request for the emails, which detailed the application of securities laws to digital assets, were overly broad and sought irrelevant material.
Paul Grewal, chief legal officer at Coinbase, stated in an X post on Aug. 6 that these documents were necessary to reveal the SEC’s “inconsistent views of digital assets and its own regulatory reach.”
Magazine: <a href="https://cointelegraph.com/magazine/china-crypto-ban-investors/" rel="noopener noreferrer nofollow">How Chinese traders and miners get around China’s crypto ban</a>

Coinbase expands crypto services to Hawaii

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