Coinbase Expands Cryptocurrency Services to Hawaii Following Regulatory Change

• Coinbase expands services to Hawaii after regulatory changes ease restrictions.
• Hawaii residents can now buy, sell, and stake cryptocurrencies with up to 12% APY on Coinbase.
• Coinbase continues to face legal opposition from the SEC over its disclosure of regulatory documents.

Coinbase has announced the expansion of its services to Hawaii, providing residents with access to a wide range of digital asset management options.

This follows significant regulatory changes made by the Hawaii Department of Commerce and Consumer Affairs’ Division of Financial Institutions (DFI) that have opened new avenues for cryptocurrency businesses in the state.

Hawaii’s strict regulations

For years, Hawaii’s strict regulations have made it difficult for cryptocurrency exchanges to operate within its borders.

One particularly difficult requirement to meet was the requirement that exchanges maintain cash reserves equal to the value of digital assets held by customers, which effectively deterred many companies from entering the Hawaiian market.

However, recent adjustments under the Hawaii Digital Currency Innovation Lab pilot program have eased those restrictions, allowing companies like Coinbase to set up shop in the state.

Hawaii Residents Can Now Use Coinbase

With this regulatory easing, Hawaii residents can now use Coinbase’s platform and mobile app to buy, sell, and manage cryptocurrencies.

In addition to these services, users can participate in cryptocurrency staking, earning up to 12% annual percentage yield (APY) on select digital assets.

This marks a significant shift for Hawaii, where interest in cryptocurrencies has grown but opportunities were previously limited due to strict state regulations.

For Coinbase, its entry into Hawaii not only expands its user base, but also underscores the state’s commitment to fostering innovation in digital currency, even as the exchange battles with the U.S. SEC over the disclosure of documents related to the application of securities laws to digital assets.