Hawaii digital currency pilot program is extended

Hawaii’s Digital Currency Innovation Lab pilot program, scheduled to close at the end of this month, has been extended until June 30, 2024, according to a news release.

The extension was announced Thursday by the state Department of Commerce and Consumer Affairs’ Division of Financial Institutions and Hawaii Technology and Development Corporation.

The lab was created by the two agencies in 2020 through a partnership to gather data to establish a regulatory scheme and explore the potential economic opportunities from digital currencies.

With successful admission into the lab, digital currency companies are permitted to conduct business in Hawaii without obtaining a state money transmitter license, the news release said.

The extension comes at a critical point with the demise of a bill that called for the licensure of digital currency companies, during the past state legislative session, the news release said.

As of Dec. 31, there were approximately 134,000 Hawaii consumers who transacted more than $800 million in digital currencies through participating companies in the lab.

Existing participating companies have the option to continue in the extended program, subject to the acceptance of a new agreement and additional fees.

Companies who withdraw from the program will have to abide by the terms of the lab and commence wind-down procedures starting on July 1 and concluding on Dec. 31.

In time, the lab will also start accepting applications from new digital currency companies who want to be admitted into the pilot program.

For more information, visit www.htdc.org/digital-currencyinnovation-lab.