Coinbase Global Inc. has announced that it will once again offer cryptocurrency services in Hawaii, marking the first time in seven years that the digital asset exchange will operate in the state.

Hawaii eases crypto regulations

Hawaii was the only state where Coinbase did not offer services. The company attributed the return to recent changes in local regulations. The Hawaii Department of Commerce and Consumer Affairs Division of Financial Institutions removed the requirement for a money transmitter license that was previously required for digital asset companies.

“We know there is a lot of interest among Hawaiians to finally use our services, we are super excited,” Faryar Shirzad, Chief Policy Officer at Coinbase, said in an interview.

Coinbase to Offer Cryptocurrency Services in Hawaii👀 photo.twitter.com/h6t66zAZua

— CryptoCrib (@Crypto_Crib_) August 13, 2024

Coinbase faces dispute with SEC

Residents of Hawaii can now trade cryptocurrencies and participate in staking. Staking involves using tokens to support blockchain transactions. Coinbase’s move comes as regulations in the U.S. are evolving. Earlier this year, the Securities and Exchange Commission approved exchange-traded funds that directly hold Bitcoin and Ether.

Despite this move, Coinbase is still embroiled in legal disputes with the SEC. The agency has accused Coinbase of operating as an unregistered securities exchange. Coinbase disputes these claims and has filed a countersuit against the SEC.

Coinbase has filed lawsuits against the SEC and the Federal Deposit Insurance Corporation (FDIC), as reported by Finance Magnates. The lawsuits, reported by FoxBusiness, allege that the agencies failed to comply with Freedom of Information Act (FOIA) requests made to the U.S. District Court for the District of Columbia.

Coinbase argues that this lack of response undermines regulatory transparency and accuses regulators of actions that could marginalize the cryptocurrency industry within the banking sector.

This article was written by Tareq Sikder on www.financemagnates.com.