Coinbase Re-Enters Hawaii After State Regulatory Changes

Journalist

Tanzeel Akhtar

Journalist

Tanzeel Akhtar

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Last updated:

August 13, 2024 00:02 EDT

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Following recent state regulatory changes, Coinbase Hawaii has relaunched, empowering residents to buy, sell, and manage various cryptocurrencies on its platform.

Hawaii’s progressive stance on crypto regulations, particularly the June 28 decision to lift the money transmitter (MT) license requirement for crypto firms, paved the way for this development.

While an MT license is no longer required, adherence to federal regulations remains paramount for all firms.

Coinbase’s Hawaii Departure and Return

Coinbase initially ceased operations in Hawaii in 2017. This decision stemmed from the Hawaii Department of Commerce and Consumer Affairs Division of Financial Institutions (DFI) mandate requiring licensure for entities offering specific virtual currency services to Hawaii residents.

In 2017, Coinbase withdrew its services, announcing the indefinite suspension of its Hawaii business.

Faryar Shirzad, Coinbase’s chief policy officer, commended the Hawaii DFI for its approach to crypto regulations. He emphasized the company’s ongoing commitment to compliance, both domestically and internationally.

Shirzad highlighted the importance of cryptocurrency in modernizing financial systems, positioning Coinbase’s return as a step toward offering accessible, affordable, and efficient financial services.

Coinbase expressed enthusiasm for expanding its services to Hawaii, citing regulatory clarity as a key factor in its decision to re-enter the state.

Coinbase Returns to Hawaii: Spotlight on Staking for Residents

Hawaii residents can now engage with crypto through Coinbase’s platform. The firm’s application provides access to hundreds of digital currencies, enabling users to earn rewards, monitor prices, and make international asset transfers.

Coinbase users can automate investments with recurring buys, earn rewards through staking, and access various tools. The platform also caters to active traders, offering over 500 spot pairs with 0.0% maker fees, TradingView-powered charting, and APIs for customized trading experiences.

A key feature for Coinbase users is staking—a process enabling users to earn rewards by contributing to the network maintenance of specific cryptocurrencies.

Coinbase’s staking feature offers returns, with the potential for users to earn up to a 12% annual percentage yield (APY) on popular assets. Users can also earn up to 5.20% in rewards by holding USD Coin (USDC), a stablecoin pegged to the U.S. dollar.