Hawaii is taking steps to push the development of cryptocurrency in the state. The state has proposed the creation of a Digital Currency Regulatory Sandbox in order to promote the responsible use of digital currency and related technology while also encouraging innovation and investment.

Goal of the Initiative

The goal of the Digital Currency Regulatory Sandbox is to reduce the risk associated with the use of digital currency, while also reducing the compliance burden on those engaging in digital currency-related activity. The initiative would create a two-year pilot program to allow innovators and developers to test new digital currency technologies or business models without requiring formal regulatory approval.

Details of the Initiative

The proposed program would include the following key points:

  • Supervision: A third-party would be appointed as a supervisor to provide guidance to the digital currency-related entities throughout the process.
  • Sandbox Participants: Any entities engaged in digital currency-related activities would be eligible to participate.
  • Regulatory Focus: The state would focus on the safety of consumers, the integrity of the financial system, and the prevention of money laundering and other criminal activity.
  • Reporting Requirements: Participants in the sandbox would be required to report on the progress of their projects and provide financial data on a regular basis.
  • Evaluation: After two years, the program would be evaluated and any necessary changes would be implemented.

State Encouragement of Digital Currency Innovation

The proposed Digital Currency Regulatory Sandbox is just one of many steps that the state of Hawaii has taken to encourage innovation and investment in the digital currency space. The state has also established a Digital Currency Working Group to develop and promote digital currency use throughout the state.

By establishing the Digital Currency Regulatory Sandbox and encouraging digital currency investment, the state of Hawaii is taking a proactive approach to supporting the growth of digital currency-related businesses and technologies. This is sure to lead to more innovation, investment and growth within the state’s digital currency industry.