Hawaii 2022 Regular Session

Hawaii Senate Bill SR25 Compare Versions

Only one version of the bill is available at this time.

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1	1	THE SENATE S.R. NO. 25 THIRTY-FIRST LEGISLATURE, 2022 STATE OF HAWAII SENATE RESOLUTION requesting the department of commerce and consumer affairs' division of financial institutions and the hawaii technology development corporation TO extend the digital currency innovation lab pilot project.
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3	3	THE SENATE S.R. NO. 25
4	4	THIRTY-FIRST LEGISLATURE, 2022
5	5	STATE OF HAWAII
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7	7	THE SENATE
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9	9	S.R. NO.
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13	13	THIRTY-FIRST LEGISLATURE, 2022
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17	17	STATE OF HAWAII
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29	29	SENATE RESOLUTION
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35	35	requesting the department of commerce and consumer affairs' division of financial institutions and the hawaii technology development corporation TO extend the digital currency innovation lab pilot project.
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41	41	WHEREAS, cryptocurrency has grown in popularity and acceptance nationwide, but there is little regulation of the industry; and WHEREAS, according to the Federal Trade Commission, cryptocurrency is digital money, which is the blanket term used to describe any money-like asset that is primarily managed, stored, or exchanged using internet technology; and WHEREAS, digital currency does not have a physical form like banknotes or minted coins, are not typically issued or backed by the United States government or any other government or central bank, and are not considered legal tender in most countries; and WHEREAS, in 2016, the Department of Commerce and Consumer Affairs' Division of Financial Institutions found that digital currency transactions differ from money transmissions and that subjecting digital currency companies, virtual currency companies, and cryptocurrency companies to the licensing and asset reserve scheme under the Money Transmitters Modernization Act under chapter 489D, Hawaii Revised Statutes, made it too burdensome for these companies to do business in the State; and WHEREAS, the Division of Financial Institutions of the Department of Commerce and Consumer Affairs and the Hawaii Technology Development Corporation have jointly created a two-year sandbox, called the Digital Currency Innovation Lab (DCIL) pilot project, to allow for limited activity of digital currency companies, virtual currency companies, and cryptocurrency companies in the State to better understand the cryptocurrency industry and determine the best method for its regulation and oversight; and WHEREAS, there are approximately sixty-one thousand digital currency consumers who have completed more than $611,000,000 in transactions with the fifteen cryptocurrency-based companies that have been accepted into the DCIL pilot project; and WHEREAS, with the termination of the DCIL pilot project on June 30, 2022, these digital currency consumers will have no choice but to empty and close their digital wallets by December 31, 2022; and WHEREAS, the results of the DCIL pilot program has confirmed the popularity and versatility of digital currency transactions and the need for more comprehensive regulation of digital currency; and WHEREAS, the Legislature has yet to pass a measure that either exempts digital currency from the Money Transmitters Act or regulates digital currency within the State; now, therefore, BE IT RESOLVED by the Senate of the Thirty-first Legislature of the State of Hawaii, Regular Session of 2022, that the Department of Commerce and Consumer Affairs' Division of Financial Institutions and Hawaii Technology Development Corporation are requested to extend the Digital Currency Innovation Lab pilot project for another two years or until legislation is enacted that provides for a digital currency licensure program, whichever occurs first; and BE IT FURTHER RESOLVED that certified copies of this Resolution be transmitted to the Commissioner of Financial Institutions and Executive Director of the Hawaii Technology Development Corporation. OFFERED BY: _____________________________ Report Title: Cryptocurrency; Digital Currency; Division of Financial Institutions; Hawaii Technology Development Corporation; Digital Currency Innovation Lab Pilot Project
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43	43	WHEREAS, cryptocurrency has grown in popularity and acceptance nationwide, but there is little regulation of the industry; and
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47	47	WHEREAS, according to the Federal Trade Commission, cryptocurrency is digital money, which is the blanket term used to describe any money-like asset that is primarily managed, stored, or exchanged using internet technology; and
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51	51	WHEREAS, digital currency does not have a physical form like banknotes or minted coins, are not typically issued or backed by the United States government or any other government or central bank, and are not considered legal tender in most countries; and
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55	55	WHEREAS, in 2016, the Department of Commerce and Consumer Affairs' Division of Financial Institutions found that digital currency transactions differ from money transmissions and that subjecting digital currency companies, virtual currency companies, and cryptocurrency companies to the licensing and asset reserve scheme under the Money Transmitters Modernization Act under chapter 489D, Hawaii Revised Statutes, made it too burdensome for these companies to do business in the State; and
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59	59	WHEREAS, the Division of Financial Institutions of the Department of Commerce and Consumer Affairs and the Hawaii Technology Development Corporation have jointly created a two-year sandbox, called the Digital Currency Innovation Lab (DCIL) pilot project, to allow for limited activity of digital currency companies, virtual currency companies, and cryptocurrency companies in the State to better understand the cryptocurrency industry and determine the best method for its regulation and oversight; and
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63	63	WHEREAS, there are approximately sixty-one thousand digital currency consumers who have completed more than $611,000,000 in transactions with the fifteen cryptocurrency-based companies that have been accepted into the DCIL pilot project; and
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67	67	WHEREAS, with the termination of the DCIL pilot project on June 30, 2022, these digital currency consumers will have no choice but to empty and close their digital wallets by December 31, 2022; and
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71	71	WHEREAS, the results of the DCIL pilot program has confirmed the popularity and versatility of digital currency transactions and the need for more comprehensive regulation of digital currency; and
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75	75	WHEREAS, the Legislature has yet to pass a measure that either exempts digital currency from the Money Transmitters Act or regulates digital currency within the State; now, therefore,
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79	79	BE IT RESOLVED by the Senate of the Thirty-first Legislature of the State of Hawaii, Regular Session of 2022, that the Department of Commerce and Consumer Affairs' Division of Financial Institutions and Hawaii Technology Development Corporation are requested to extend the Digital Currency Innovation Lab pilot project for another two years or until legislation is enacted that provides for a digital currency licensure program, whichever occurs first; and
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83	83	BE IT FURTHER RESOLVED that certified copies of this Resolution be transmitted to the Commissioner of Financial Institutions and Executive Director of the Hawaii Technology Development Corporation.
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91	91	OFFERED BY: _____________________________
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95	95	OFFERED BY:
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97	97	_____________________________
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103	103	Report Title:
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105	105	Cryptocurrency; Digital Currency; Division of Financial Institutions; Hawaii Technology Development Corporation; Digital Currency Innovation Lab Pilot Project