The Hawaiian Department of Commerce and Consumer Protection should review the requirements for virtual asset service providers (VASP). This was stated by members of the State House of Representatives from the Democratic Party.
Currently, cryptocurrency companies are required to hold reserves equivalent to the amount of digital assets of clients. Lawmakers called the rule “too burdensome” for the VASP and called for it to be repealed.
“The reserve requirements that Hawaii apply to digital asset firms are inconsistent with those of other states,” the document says.
In 2017, Bitcoin exchange Coinbase suspended customer service in Hawaii. According to the platform, the regulator’s requirement for reserves has created an unbearable financial burden for the company.
Recall that in March 2020, Hawaii launched a pilot program Digital Currency Innovation Lab, under which businesses were able to issue digital assets without a license to provide payment services.