Guidance for Digital Currency Companies Applying for a license in Hawaii

Bitcoin Research — Law, Regulation, Markets & Origins (2026)

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Hi

2023

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Research, not advice. Part of the Bitcoin research archive (October 2026). Claims labelled unverified, contested or fringe are reported, not endorsed; statuses of bills and rules are as of the date checked. Government, court and patent records are public domain; the research notes are CC BY 4.0.

JOSH GREEN, M.D.
        GOVERNOR | KE KIAʻĀINA                                                                              IRIS IKEDA
                                                                                                           COMMISSIONER
            SYLVIA LUKE
LIEUTENANT GOVERNOR | KA HOPE KIAʻĀINA                                                                    TARA L. MURPHY
                                                                                                        DEPUTY COMMISSIONER

           NADINE Y. ANDO
                                             STATE OF HAWAII | KA MOKUʻĀINA ʻO HAWAIʻI
                                                                                                      Phone: (808) 586-2820
      DIRECTOR | KA LUNA HOʻOKELE               DIVISION OF FINANCIAL INSTITUTIONS                    Fax:     (808) 586-2818
           DEAN I HAZAMA                  DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS               E-Mail: [email protected]
DEPUTY DIRECTOR | KA HOPE LUNA HOʻOKELE
                                                       KA ʻOIHANA PILI KĀLEPA
                                            335 MERCHANT STREET, ROOM 221, HONOLULU, HAWAII 96813
                                                     P.O. BOX 2054, HONOLULU, HAWAII 96805

       Guidance for Digital Currency Companies

       Applying for a license in Hawaii?

       The Hawaii Division of Financial Institutions (HDFI) is currently only able to license digital currency
       companies that can qualify for a money transmitters license under Hawaii Revised Statutes, Chapter
       489D. HDFI understands that digital currency companies are unable to meet the licensing
       requirements under the money transmitter law because companies are unable to meet statutory
       requirements relating to permissible investments in U.S. dollars, trust accounts and bonding,

       In 2020 the HDFI partnered with the Hawaii Technology Development Corporation (HTDC) to study
       digital currency transactions to determine whether, and the extent to which this activity should be
       regulated. The study has shown HDFI and HTDC that the money transmitter laws are not well suited
       to oversee digital currency activity.

       During the 2022 Legislative Session, the HDFI introduced a bill proposing a new law to license digital
       currency companies. This bill proposal was created with input from the DCIL participants, the
       industry, consumers, and other stakeholders.

       The legislature did acknowledge that a license is needed for digital currency companies for consumer
       protection. It also acknowledged that the bill proposed requirements already presently used by the
       DCIL participants. Unfortunately, the bill did not pass into law.

       The 2023 legislature is currently entertaining the 2022 proposal to license digital currency companies.
       If this bill passes into law, HDFI will begin the licensure process in 2024.

       If this occurs, currently licensed money transmitter companies may be required to have two licenses.
       Companies with digital currency activities will need this new digital currency license to conduct the
       digital currency activities as well as the existing money transmission license to conduct money
       transmitter transactions.

       In light of the above, Digital Currency Companies who have applied for a money transmitter license in
       Hawaii should withdraw their applications as they will be unlikely to receive the money transmission
       license in compliance with HRS Chapter 489D.

       The proposed licensing structure in the current legislation will be similar, but there are some
       differences in the application process from the other non-depository licenses. HDFI will not “transfer”
       the company’s money transmitter application to the new license application. Companies will have to
       apply for the new license.