Coinbase Global Inc. has announced it will resume offering cryptocurrency services in Hawaii. This marks the first time in seven years that the digital asset exchange will operate in the state.

Hawaii Eases Crypto Regulations

Hawaii was the only state where Coinbase did not offer services. The company attributed its return to recent changes in local regulatory guidelines. The Hawaii Department of Commerce and Consumer Affairs Division of Financial Institutions has removed the requirement for a money-transmitter license, which was previously needed for digital asset businesses.

“We know there’s a lot of interest among Hawaiians to finally avail themselves of our services, we are super excited,” Faryar Shirzad, Chief Policy Officer at Coinbase, said in an interview.

Coinbase is set to offer cryptocurrency services in Hawaii👀 pic.twitter.com/h6t66zAZua

— Crypto Crib (@Crypto_Crib_) August 13, 2024

Coinbase Faces SEC Dispute

Residents of Hawaii will now be able to trade cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term and participate in staking. Staking involves using tokens to support blockchain transactions. Coinbase’s decision comes as the regulatory environment in the US changes. Earlier this year, the Securities and Exchange Commission approved exchange-traded funds that directly hold Bitcoin and Ether.

Despite this move, Coinbase is still involved in legal disputes with the SEC. The agency has accused Coinbase of operating as an unregistered securities exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term. Coinbase contests these claims and has filed a countersuit against the SEC.

Coinbase has filed lawsuits against the SEC and the Federal Deposit Insurance Corporation (FDIC), as reported by Finance Magnates. These lawsuits, reported by FoxBusiness, allege that the agencies failed to fulfill Freedom of Information Act (FOIA) requests made to the US District Court for the District of Columbia.

Coinbase argues that this lack of response undermines transparency in regulatory practices and accuses the agencies of actions that could marginalize the cryptocurrency industry within the banking sector.