Coinbase Global Inc. has announced it will resume offering
cryptocurrency services in Hawaii. This marks the first time in seven years
that the digital asset exchange will operate in the state.
Hawaii Eases Crypto Regulations
Hawaii was the only state where Coinbase did not offer
services. The company attributed its return to recent changes in local
regulatory guidelines. The Hawaii Department of Commerce and Consumer Affairs
Division of Financial Institutions has removed the requirement for a
money-transmitter license, which was previously needed for digital asset
businesses.
“We know there’s a lot of interest among Hawaiians to
finally avail themselves of our services, we are super excited,” Faryar
Shirzad, Chief Policy Officer at Coinbase, said in an interview.
Coinbase is set to offer cryptocurrency services in Hawaii👀 pic.twitter.com/h6t66zAZua
— Crypto Crib (@Crypto_Crib_) August 13, 2024
Coinbase Faces SEC Dispute
Residents of Hawaii will now be able to trade
cryptocurrencies and participate in staking. Staking involves using tokens to
support blockchain transactions. Coinbase’s decision comes as the regulatory
environment in the US changes. Earlier this year, the Securities and Exchange
Commission approved exchange-traded funds that directly hold Bitcoin and Ether.
Despite this move, Coinbase is still involved in legal
disputes with the SEC. The agency has accused Coinbase of operating as an
unregistered securities exchange. Coinbase contests these claims and has filed
a countersuit against the SEC.
Coinbase
has filed lawsuits against the SEC and the Federal Deposit Insurance
Corporation (FDIC), as reported by Finance
Magnates. These lawsuits, reported by FoxBusiness, allege that the agencies
failed to fulfill Freedom of Information Act (FOIA) requests made to the US
District Court for the District of Columbia.
Coinbase argues that this lack of
response undermines transparency in regulatory practices and accuses the
agencies of actions that could marginalize the cryptocurrency industry within
the banking sector.
This article was written by Tareq Sikder at www.financemagnates.com.
