In a strategic move, US-based crypto exchange Coinbase, has announced its return to the Hawaiian market after a seven-year hiatus. The decision marks a significant milestone for the company, as Hawaii was the only state in the US where Coinbase had ceased its operations until now.
Coinbase’s Homecoming
According to a Bloomberg report, the return to Hawaii comes following notable adjustments in local regulatory guidance, which prompted Coinbase’s renewed interest in serving the residents of the Aloha State, home to approximately 1.4 million individuals.
Citizens of Hawaii can now engage in cryptocurrency trading and participate in staking activities to earn interest on their digital assets, as stated by the San Francisco-headquartered exchange.
Coinbase’s departure from Hawaii in 2017 was primarily attributed to the state’s requirement for digital asset businesses to hold a money transmitter license and maintain fiat reserves equivalent to the total value of digital currency funds held for customers.
However, this barrier was lifted at the end of June, with the Hawaii Department of Commerce and Consumer Affairs Division of Financial Institutions announcing that digital currency firms no longer need a Hawaii-issued money transmitter license to operate within the state.
Faryar Shirzad, Coinbase’s Chief Policy Officer, expressed enthusiasm about re-establishing services in Hawaii, acknowledging the keen interest among Hawaiians to access the exchange’s offerings.
The move is in line with a broader trend in the evolving US regulatory landscape, exemplified by the SEC’s recent approval of exchange-traded funds (ETFs) for Bitcoin and Ethereum holdings. However, the crypto firm’s legal battles with the regulator is still ongoing, despite the loosening of regulations in certain areas.
Legal Battles Escalate In The US
Coinbase still finds itself embroiled in a legal dispute with the SEC over allegations of operating as an unregistered securities exchange. The crypto exchange has retaliated by filing a countersuit against the agency, disputing the claims and pushing for the release of internal documents to bolster its defense.
As the legal battle intensifies, Coinbase recently petitioned the SEC for the disclosure of internal documents, urging the regulator to fulfill its discovery obligations.
As Bitcoinist reported, the exchange’s efforts were met with resistance from the SEC, which deemed the requests “overly broad and burdensome.” Coinbase’s response criticized the SEC for failing to conduct a comprehensive search of relevant documents and emphasized the importance of a fair discovery process.
In addition, the exchange recently weighed in on the current state of the market with a new report highlighting the impact of macroeconomic factors on the crypto industry, underscoring investor concerns amid global economic shifts.
With leverage in on-chain spot markets declining and limited catalysts for upward price movement, the exchange concluded that the market remains susceptible to external pressures and geopolitical tensions.
Featured image from Shutterstock, chart from TradingView.com