Bill > SR25

This Resolution requests the Department of Commerce and Consumer Affairs' Division of Financial Institutions and the Hawaii Technology Development Corporation to extend the Digital Currency Innovation Lab (DCIL) pilot project, a two-year program designed as a regulatory sandbox to better understand and regulate digital currencies like cryptocurrency. The DCIL was created because existing regulations, specifically the Money Transmitters Modernization Act, were found to be too burdensome for digital currency companies, hindering their ability to operate in Hawaii. The pilot project has shown significant consumer and transaction activity, and its upcoming termination on June 30, 2022, would force users to close their digital wallets, while the Legislature has not yet enacted specific legislation for digital currency regulation. Therefore, the Resolution asks for the DCIL to be extended for another two years or until a digital currency licensing program is established, whichever comes first, to allow for continued oversight and development of appropriate regulations.