Coinbase to offer cryptocurrency services in Hawaii

The crypto exchange Coinbase has begun offering crypto services in Hawaii.

Hawaii residents can buy, sell and manage their crypto on Coinbase, in addition to using the exchange to stake assets and sending funds internationally, according to a release shared with The Block.

"We are officially entering Hawaii following regulatory changes made by the Hawaii Department of Commerce and Consumer Affairs Division of Financial Institutions which provide clarity for cryptocurrency firms," Coinbase wrote in a release.

Coinbase brought in nearly $64 billion in crypto trading volume in July, according to The Block's Data Dashboard.

Hawaii's crypto regime

Coinbase pulled out of Hawaii in 2017 due to its cryptocurrency regulation policy that required companies to hold one-to-one cash reserves for bitcoin holdings, Bitcoin.com News reported at the time.

Juan Suarez, Coinbase's then Head of Legal, said the policy made it "impossible" for the exchange to continue operations in the state.

Three years later, Hawaii's Department of Financial Institutions and Hawaii Technology Development Corporation jointly initiated a regulatory sandbox for crypto businesses called the Hawaii Digital Currency Innovation Lab. Twelve firms, which included the crypto exchange and custodian Gemini, could provide crypto services in the state for two years without having to first obtain a state money transmitter license, The Block previously reported.

Hawaii's Digital Currency Innovation Lab has since concluded on June 30. Crypto companies can still operate in the the state as an unregulated business, though they must adhere to federal licensing and regulatory requirements, according to a Hawaii government release.