Coinbase Expands to Hawaii, Criticizes Canada for Outdated Regulations

• Coinbase can now offer services in Hawaii thanks to relaxed local regulations aimed at fostering innovation.
• Hawaii regulators revoked the requirement for crypto firms to hold the cash equivalent of the users' digital assets on their platforms.
• The exchange urges Canada to modernize its regulations, as 85% of countries are expected to introduce digital asset frameworks over the next year.

The world's second-largest crypto exchange, Coinbase, has expandedits services to Hawaii. Under Hawaii's Department of Commerce and Consumer Affairs Division of Financial Institutions (DFI) regulations, the island's residents can now access trading, staking, and other tools on the platform.

Aloha, Hawaii - DFI Eases Restrictions

As a centralized exchange, Coinbase must comply with local regulations for digital asset services providers.

Previously, Hawaii had restrictive laws for crypto firms, including a requirement to maintain cash reserves equal to the value of tokens held by investors on the platform, which made operations in the state nearly impossible.

The DFI eased these restrictions under the Hawaii Digital Currency Innovation Lab pilot program, which aims to foster crypto adoption and development in the state.

For years, Hawaii residents have expressed a strong interest in crypto on Coinbase, the only publicly traded crypto exchange in the U.S., and we're excited to deliver on that promise today. This expansion is a testament to our commitment to compliance across the United States and abroad.CoinbaseCrypto Regulation Divide - Canada Lags Behind

While some regions relax regulations, others hold a tight grip on crypto businesses. On August 13, Coinbase's country director for Canada, Lucas Matheson, urged Canadian regulators to modernize their approach at the Blockchain Futurist Conference.

Matheson noted that 85% of countries will roll out comprehensive digital asset regulatory frameworks in 2025, but Canada still has a lot of work ahead.

Last month, Coinbase launched the Stand With Crypto initiative in Canada to convey the opportunities of blockchain innovation to policymakers.

Although Matheson said that Canadian authorities have been more cooperative with crypto businesses than American authorities, he criticized them for lackinginput and suppressing citizens' economic freedoms.

Closing Remarks

Coinbase's expansion into Hawaii under new legislation and the push for clearer frameworks in Canada demonstrates its commitment to promoting regulatory clarity in the crypto industry.

The platform's focus on collaboration and education might pave the way for a more welcoming environment for crypto businesses in North America. However, only time will tell whether policymakers are willing to cooperate.

References

• Aloha, Hawaii: Coinbase is here (Coinbase)
• Blockchain Futurist Conference 2024 (YouTube)
• Digital Currency Innovation Lab (DCCA Hawaii)

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