Vetoed by Governor Josh Green

Vote Smart's Synopsis:

Vote to pass a bill that establishes within the Department of Commerce and Consumer Affairs Division of Financial Institutions, a program for the licensure, regulation, and oversight of special purpose digital currency companies.

Highlights:

• Alleges that the cryptocurrency industry has little regulation (Sec. 1). 

• Alleges that a new regulatory framework is needed to confront the issue as determined by the Hawaii Digital innovation lab (Sec. 1). 

• Defines terms related to cryptocurrency (Sec. 2). 

• Exempts individuals who exchange, transfer, or store cryptocurrency following the regulations set in the SEC act of 1934 (Sec. 2). 

• Exempts individuals who only provide connectivity software (Sec. 2). 

• Specifies that the commissioner has the power to determine all other exemptions to the state regulations (Sec. 2).

• Establishes the powers of the Commissioner (Sec. 2). 

• Specifies that an individual may not engage in digital currency business activities unless the person has been licensed in the state of Hawaii (Sec. 2). 

• Specifies that any malfeasances to the new regulations will be payments made out to the compliance resolution fund (Sec. 2). 

• Specifies that the commissioner may enter into a relationship with the NMLS to collect information and maintain records (Sec. 2). 

• Specifies that the commissioner can use the information presented to determine whether a person demonstrated general fitness for licensure (Sec. 2)

• Establishes a regulatory framework that will requires a licensee provided cybersecurity program to ensure licensees sensitive data is protected as well as other individuals (Sec. 2).

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that establishes within the Department of Commerce and Consumer Affairs Division of Financial Institutions, a program for the licensure, regulation, and oversight of special purpose digital currency companies.

Highlights:

• Alleges that the cryptocurrency industry has little regulation (Sec. 1). 

• Alleges that a new regulatory framework is needed to confront the issue as determined by the Hawaii Digital innovation lab (Sec. 1). 

• Defines terms related to cryptocurrency (Sec. 2). 

• Exempts individuals who exchange, transfer, or store cryptocurrency following the regulations set in the SEC act of 1934 (Sec. 2). 

• Exempts individuals who only provide connectivity software (Sec. 2). 

• Specifies that the commissioner has the power to determine all other exemptions to the state regulations (Sec. 2).

• Establishes the powers of the Commissioner (Sec. 2). 

• Specifies that an individual may not engage in digital currency business activities unless the person has been licensed in the state of Hawaii (Sec. 2). 

• Specifies that any malfeasances to the new regulations will be payments made out to the compliance resolution fund (Sec. 2). 

• Specifies that the commissioner may enter into a relationship with the NMLS to collect information and maintain records (Sec. 2). 

• Specifies that the commissioner can use the information presented to determine whether a person demonstrated general fitness for licensure (Sec. 2)

• Establishes a regulatory framework that will requires a licensee provided cybersecurity program to ensure licensees sensitive data is protected as well as other individuals (Sec. 2).

Full Bill Text