Coinbase expands to Hawaii following loosening restrictions due to regulatory changes. Hawaii residents can now buy, sell, and stake cryptocurrencies with up to 12% annual interest on Coinbase. Coinbase still faces legal backlash from the SEC over the disclosure of regulatory documents.
Coinbase announces expansion to Hawaii, offering residents access to a wider range of digital asset management options.
This comes on the heels of significant regulatory changes by the Hawaii Department of Commerce and Consumer Affairs Division of Financial Institutions (DFI), paving the way for new avenues for cryptocurrency businesses in the state.
Hawaii's strict regulations
For many years, Hawaii's strict regulations have made it difficult for cryptocurrency exchanges to operate within the state.
One particularly onerous requirement was that exchanges must maintain cash reserves equal to the value of their customers’ digital assets, effectively barring many firms from entering the Hawaii market.
However, recent adjustments made as part of the Hawaii State Digital Currency Innovation Lab pilot program have loosened those restrictions, allowing companies like Coinbase to gain a foothold in the state.
Coinbase Now Available to Hawaii Residents
This deregulation means Hawaii residents can now use Coinbase's platform and mobile app to buy, sell, and manage cryptocurrencies.
In addition to these services, users can participate in crypto staking and earn up to 12% Annual Percentage Yield (APY) on their digital assets of choice.
This marks a big change for Hawaii, where interest in cryptocurrencies has been growing but opportunities have been limited until now due to strict state regulations.
For Coinbase, entering Hawaii not only expands its user base, but also highlights the state's focus on promoting innovation in the digital currency space at a time when it is battling the U.S. Securities and Exchange Commission (SEC) over disclosure documents related to the application of securities laws to digital assets.
