Last week, two bills were introduced in Hawaiian Senate aiming to include virtual currencies under Money Transmission Law. Both bills comes after the decision for state’s adoption of the Uniform Regulation of Virtual Currency Businesses Act, a proposed model legislation published in 2017. It works as a guide states seeking to enact policies and provisions relating to the technology.
If passed, HI SB2853 and HI SB3082 would require those seeking to transmit virtual currencies in the state to have a license to do so. They would also mandate that these persons or businesses issue a warning to consumers prior to enabling such transactions.
However, the legislation exempts exchanges under section 489D-8 of the Act that mandates money transmitters maintain cash equivalent to the virtual currency funds held for the clients. Still, SB3082 consists a warning to the investors about the volatility of cryptocurrencies, it reads,
“You should be aware that there is a potential for you as a consumer to lose all of your virtual currency. Though cash can also be lost, with virtual currency this loss can occur because of a computer failure; malicious software attack; an attack, closure or disappearance of a virtual currency exchange company; lack of security; loss of your private key; or a sudden or dramatic change in value.”
Regulating cryptocurrencies is in favor of the client or investors of a country or state. And, this sweep of bringing cryptocurrencies under regulation is a safe bet against its volatility.