Cryptocurrency has been legalized in Hawaii. Previously, Hawaii had a reputation for being one of the least welcoming states for virtual currencies, ranking just above New York—a state known for its strict Bitlicense, which Hawaii had been considering for its own regulation. However, in a subtle announcement from the governor’s office, it was disclosed that companies dealing with digital currencies are no longer mandated to possess a money transmitter license issued by Hawaii to operate in the state. “The announcement went on to say that the firms would maintain their transaction operations as a business not subject to regulatory oversight.” Nonetheless, these corporations must fulfill all relevant federal licensing or registration mandates that apply to them. Put differently, Hawaii has quickly transitioned from a rigid regulatory stance to a more relaxed, “hang loose” approach. Whether to obtain a license or not. The modification of the policy is the result of prolonged discussions, research, and repeated, abrupt failures of attempted solutions in the state’s legislative body. The Division of Financial Institutions (DFI), which is a part of the Hawaii Department of Commerce and Consumer Affairs, has consistently asserted that it has authority over cryptocurrency, particularly cryptocurrency exchanges. The regulatory framework in this area treats cryptocurrency exchanges such as Coinbase and Binance similarly to traditional money transmission services like Western Union. As a result, these exchanges are subjected to stringent reserve obligations in Hawaii, just as money transmitters are.