Coinbase Global Inc. announced its return to Hawaii after a seven-year hiatus, marking the end of its absence from the only U.S. state where it did not previously operate. The largest digital asset exchange in the U.S. attributed its comeback to updated local regulatory guidelines that have facilitated its re-entry into the Hawaiian market, which comprises approximately 1.4 million residents.
With its return, Coinbase will now offer Hawaiians the ability to trade cryptocurrencies and earn interest on their digital assets through staking, which involves using tokens to support blockchain transactions. This announcement was made in a blog post by the San Francisco-based company on Tuesday.
Read more: Pump.fun Achieves Unprecedented $28.7 Million Monthly Revenue in July
Coinbase initially withdrew from Hawaii in 2017 due to stringent regulations requiring digital asset businesses to obtain a money transmitter license and maintain fiat reserves equal to the total value of digital currencies held on behalf of customers. However, these requirements were eliminated at the end of June when the Hawaii Department of Commerce and Consumer Affairs Division of Financial Institutions announced that digital currency companies are no longer required to have a Hawaii-issued money transmitter license to operate within the state.
“We know there’s a lot of interest among Hawaiians to finally avail themselves of our services, and we are super excited,” said Faryar Shirzad, Coinbase’s chief policy officer, in an interview.
Coinbase’s reentry into Hawaii aligns with the changing regulatory landscape in the U.S., including the Securities and Exchange Commission’s recent approval of exchange-traded funds (ETFs) that directly hold Bitcoin and Ether. Meanwhile, Coinbase is still engaged in legal proceedings with the SEC over allegations of operating as an unregistered securities exchange, a claim that Coinbase contests, having filed a countersuit against the agency.
Cre: Bloomberg
I’m Jessi Lee, currently living in Singapore. I am currently working as a trader for AZCoin company, with 5 years of experience in the cryptocurrency market, I hope to bring you useful information and knowledge about virtual currency investment.
Email: [email protected]
