The Hawaii Department of Commerce and Consumer Affairs (DCCA) has exempted local crypto companies from having to obtain a money transmitter license (MTL) to do business in the state.

The Ministry announced the completion of the Digital Currency Innovation Lab (DCIL) cryptocurrency research project, which began in 2020. The project was created to create a local regulatory framework that would regulate the activities of companies working with cryptocurrencies. At the end of the project, Hawaii authorities decided that cryptocurrency companies will no longer require an MTL license to operate within the state.

The DCCA clarified that companies must still be responsible for complying with federal requirements set by the Financial Crimes Enforcement Enforcement Agency (FinCEN), the U.S. Securities and Exchange Commission (SEC), and the Financial Institutions Regulatory Authority (FINRA). Plus comply with consumer protection and anti-money laundering (AML) requirements.

Obtaining an MLT license requires significant investment and resources—applicants must meet minimum capital and business plan requirements. According to law firm Dilendorf, MTL requirements vary by state, resulting in many inconsistencies that encourage companies to prioritize other states.

DCIL Banking Commissioner Iris Ikeda has announced that it is important to educate consumers about the risks associated with cryptocurrencies. This will now be a key focus for DCIL.

In 2022, Hawaii approved the creation of a working group to study digital currencies and blockchain. Based on the research results, the authorities planned to develop laws to regulate crypto-assets.