Hawaii invites crypto firms with a digital currency pilot programme announcement made by the Governor. It is an initiative by the Department of Commerce and Consumer affairs, Division of Financial Institutions (DFI) and Hawaii Technology Development Corporation (HTDC).
March 17 marked the launch of Hawaii’s first pilot program for digital currency, driven by a partnership between the Department of Commerce and Consumer Affairs, Division of Financial Institutions (DFI) and Hawaii Technology Development Corporation (HTDC). This joint effort by the State of Hawaii, termed the “Digital Currency Innovation Lab” is a two-year initiative that aims to achieve a more in-depth perspective of digital currency and allows digital currency issuers to do business in Hawaii without obtaining a state money transmitter license during the effective period of the pilot program. The insights attained will be used to guide legislation and determine the future of digital currency activity in Hawaii.
Companies who are selected will be carefully reviewed to ensure that Hawaii’s consumers are protected, with participating companies demonstrating that they have the essential capital, financial and technical expertise to conduct business in the State.
Iris Ikeda, Commissioner of Financial Institutions, commented that DFI has issued a “no action message”, meaning that no action will be taken against a company conducting what DFI would consider unlicensed money transmission activity, if the company is successfully admitted into the pilot program.
“DFI is leveraging its statutory authority to provide an innovative way to introduce digital currency issuers into the State of Hawaii, while ensuring the safety of our consumers. By acknowledging digital currencies as a transmission vehicle of the future, we will be able to craft legislation that is conducive to its development in Hawaii,” says Ikeda.
Len Higashi, acting executive director of HTDC believes that lessons learned through the pilot program can assist the State in developing expertise in and becoming an early adopter of digital currency. “By spearheading the Digital Currency Innovation Lab, Hawaii can position itself on the forefront of financial technology and potentially, reap the economic benefits that accompany the leadership stance taken.”
The Digital Currency Innovation Lab will start accepting applications from March 17, 2020 to May 1, 2020 online. For more details on the pilot program and application process, visit the HTDC website at: www.htdc.org/programs/#dcil-section.
Iris Ikeda, Hawaii’s commissioner of financial institutions, has emphasized that the DFI has issued a no-action message to prevent regulatory recourse for companies operating under the sandbox who engage in what would normally be considered unlicensed money transmission activities.
“DFI is leveraging its statutory authority to provide an innovative way to introduce digital currency issuers into the State of Hawaii, while ensuring the safety of our consumers,” Ikeda said. “By acknowledging digital currencies as a transmission vehicle of the future, we will be able to craft legislation that is conducive to its development in Hawaii.
Len Higashi, the acting executive director of the HTDC, expressed his hope that the program will allow Hawaii to “position itself on the forefront of financial technology and potentially, reap the economic benefits that accompany the leadership stance taken.”
Interested companies have until May 1 to apply for the program, and must pay a $500 application fee plus $1,000 for each term of participation.
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