Last year, da HDCIL Hawaii crypto pilot program get extended till June 30, 2024. Da program let Hawaii residents register wit approved companies and exchanges fo’ buy, sell, and trade crypto. If dey get in, da companies can do business in Hawaii without gettin’ a state money transmitter license.
Division of Financial Institutions (DFI) neva ban crypto businesses from Hawaii. But in 2017, da regulator make da rule sayin’ dat companies gotta hold same amount of regular money as their clients hold crypto. Da “double-reserve” rule. Bumbye, da licensed crypto companies wen run away cause dey say da rule too hard, no good, and no good fo’ da customers. Companies like Coinbase wen leave da state.
So far, ’bout 134,000 Hawaii peeps wen transact ova $800 million in digital money through da companies in da Hawaii crypto pilot program.
Wen FTX fallout happen, things get uncert’ain. If one of da exchanges close, chances are, you no can get to your crypto. Dat’s cuz exchanges stay in da middle, hold and trade your crypto, but if Hawaii crypto pilot program end and you forget, you no can access or get your crypto back. Dis could happen cuz of bankruptcy, regulat’ry stuff too, security breaches or oda technical problems. If dis happen, it important to have a backup plan, make sure your crypto stays safe and you can still access it. You can move it to anodda exchange, use a hardware wallet, or self-custody.
Also tho Hawaii limited, important to do research, pick a reputable exchange wit good security, insurance and strong track record. Doing dis ahead of time can help prevent you from losin access to your crypto if da exchange close down.