Hawaii, a US state, is going to open its beaches to blockchain firms, according to a press release by the ‘Department of Commerce and Consumer Affairs’ (DCCA). The aim is to explore new policies to turn Hawaii into an “early adopter.” The state is going to launch a new SandBox on Local Beaches as opposed to earlier untenable regulations.
Hawaii‘s Crypto Beachhead Program in Details
The US state of Hawaii is soon going to open its doors for crypto beachhead in a pilot program.
The pilot program will run for two-year. This flagship project is going to allow officials to explore more amenable crypto regulations, according to the DCCA press release.
The new program is called The Digital Currency Innovation Lab. The program is a joint venture between the DCCA, Hawaii Technology Development Corporation (HTDC), and the Division of Financial Institutions (DFI).
The application process began on Tuesday and will continue until May 1. The application costs $500.
Once inducted, companies will have the necessary money transmitting license waived. These companies will also have to pay an additional $1,000 per term that they participate in the program.
New Sandbox Trigger Hopes for Blockchain Firms
Doing business in Hawaii might become much easier for crypto businesses. A new sandbox initiative hopes to turn Hawaii into a leader in the US.
This new sandbox will compensate for the image built about crypto regulations by Hawaii after Blockchain firm Coinbase fled the state due to“untenable” crypto regulations. Hawaii is now reconsidering its position for Blockchain Firms.
In the past, Hawaiian authorities demanded companies servicing Hawaiian residents to hold cash equivalents backing any crypto holdings.
This policy meant that companies would have to siphon funds used to pay operational costs would instead need to be held as collateral at all times.
In 2017, Coinbase legal representative, Juan Suarez wrote that the company “cannot accept this tradeoff.”
Earlier, many other crypto businesses have avoided Hawaii for similar reasons.
HTDC’s acting executive director, Len Higashi, hopes for a big change after the new sandbox initiative under the pilot program. The director said:
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.