Coinbase, a leading centralized cryptocurrency exchange, has announced its expansion into Hawaii, enabling residents to buy, sell, and manage their digital assets through the platform.
This development follows significant regulatory changes made by Hawaii’s Department of Commerce and Consumer Affairs Division of Financial Institutions (DFI). In a press release shared with Cointelegraph, Coinbase highlighted the collaborative efforts with local authorities to enter the Hawaii market.
“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,” the company stated.
Implications for Hawaii residents
The press release indicates that Hawaiian residents now have access to Coinbase’s platform and can use its app to engage with “hundreds of cryptocurrencies.” Additionally, Hawaii customers can utilize a range of crypto services, including staking, where they can earn up to 12% APY in staking rewards on popular assets. The press release also noted that residents can now transfer their assets internationally, addressing a long-standing interest in cryptocurrency within the state.
Hawaii regulatory changes
Historically, Hawaii had stringent regulations that made it challenging for crypto businesses to operate. The state’s requirement for crypto exchanges to maintain cash reserves equal to the value of digital assets held by customers created significant barriers. However, the DFI has relaxed these restrictions as part of the Hawaii Digital Currency Innovation Lab pilot program, which was established to eliminate the reserve requirement and foster innovation in the crypto space.
Coinbase vs. SEC pushback
In related news, Coinbase is currently in a legal dispute with the U.S. Securities and Exchange Commission (SEC). On August 5, the SEC filed a motion to deny Coinbase’s request to reveal certain documents, including internal and external emails related to the application of securities laws to digital assets. Coinbase’s chief legal officer, Paul Grewal, argued on X (formerly Twitter) that these documents are crucial to exposing the SEC’s “inconsistent views of digital assets and its own regulatory reach.”
