Different governments around the world are working hard to impose rules to govern the Bitcoin. Many of them have managed to come up with strict rules. Now, they control not only the bitcoin but also the trade of cryptocurrency. Some of the countries that have managed to come up with the laws are South Korea and China. As of S. Korea, the government announced about a month ago that it was going to impose the rules, which prepared various exchanges that were now aware of the strict rules.
Why Is The State Of Hawaii Forcing Cryptocurrency Traders To Be Licensed?
When the rules finally came into effect, it wasn’t hard for exchanges to accept. However, it is going to take some time before exchanges fully adapt to the new regulations. China, on the other hand, is extreme. Authorities in China entirely banned the use of cryptocurrency in the country. It is against the law to engage in the trade of cryptocurrency in China. If found you will be prosecuted under the law. It is on this note that the U.S. State of Hawaii, unlike Washington State , is planning to introduce its regulation.
The Money Transmitters Act
The state’s bureaucrats are looking into means and ways they will introduce their controls on digital coins. The elite in the state feel optimistic and believe that it is possible to do so. Recently, a group of legislators from the state presented a bill. In it, they seek the state to consider cryptocurrencies as monetary instruments. If this is finally assumed and seen appropriate, then digital coins will use the same law as other currencies. That means, they will be under the Money Transmitters Act.
Bitcoin, $BCH.X And Other Cryptocurrencies Must Apply For A License?
For one to engage in the business, therefore, they would be needed to hold a license. In the end, they will be entitled to pay tax to the state just like other monetary transmitters. Additionally, this would mean that holder of digital currency accounts will have to register their accounts. The bill, which has been dubbed SB3082 is likely to cause a mixed reaction among members them, residents. If the bill is passed, it is evident that anyone interested to deal with Bitcoin, Bitcoin Cash or any other cryptocurrency must apply for a license.
When Will Hawaii Force Cryptocurrency Traders To Have Get A License?
The same proposed bill will also nullify the previous requirements. Earlier, it was mandatory for those with the license to hold reserve funds. What is more, one has to input a lot of personal information on the license application sheet. Some of the things required will be full names, prior criminal convictions if any. There will also be detailed business descriptions among a notable of things. If you qualify to run a bitcoin cryptocurrency exchange, you’ll be notified.
Hawaii has never been keen on cryptocurrency or gambling for that matter. So, Why Did Hawaii Say Aloha to Cryptocurrencies? Coinbase has officially left the state of Hawaii, which leaves residents with a few options. They can stop trading cryptocurrency on Coinbase, move to another platform or use a Virtual Private Network (VPN) to buy and sell crypto on Coinbase.
This news may come as a surprise to some folks but if you have been staying up-to-date with the latest news, you may remember that Coinbase stated they were leaving Hawaii in May 2017.