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Hawaii crypto firms no longer need MT license, regulator rules

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Cryptocurrency firms in Hawaii are now exempt from the requirement to obtain a Money Transmitter License (MTL) to operate in the state. The Hawai‘i Department of Commerce and Consumer Affairs (DCCA) announced the conclusion of the Digital Currency Innovation Lab (DCIL) on June 30, 2024. This initiative, which began in 2020, aimed to explore digital currency activities and assess the necessary regulatory framework for crypto-related companies.

Following the project’s completion, Hawaii authorities decided that digital currency companies no longer need a Hawai‘i-issued MTL to conduct business within the state. However, these companies must still comply with federal regulations set by the Financial Crimes Enforcement Network (FinCEN), the Securities and Exchange Commission (SEC), and the Financial Industry Regulatory Authority (FINRA), among other federal regulatory requirements involving consumer protection and Anti-Money Laundering measures.

Obtaining a MTL license typically requires significant resources, including maintaining permissible investments, a minimum net worth, a business plan, and a compliance program. The requirements for an MTL vary by state, leading to inconsistency and making it difficult for businesses to operate uniformly across the U.S.

Major industry players, such as the crypto payment gateway Alchemy Pay, have been actively working with regulators to secure MTL licensing in multiple states. Despite the exemption in Hawaii, the DCCA emphasized the importance of consumer awareness regarding the risks associated with cryptocurrencies. Banking Commissioner Iris Ikeda highlighted the need for public education on these risks, indicating that this would be a primary focus for the authority moving forward.

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The Federal Bureau of Investigation (FBI) recently warned against emerging criminal schemes targeting cryptocurrency scam victims, advising the public to be cautious of advertisements for crypto recovery services and to protect private information. The FBI has also advised against using unregistered crypto money transmitting services.

Source: cointelegraph.com

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Switzerland Regulatory Technology Business Report 2024: Market to Surpass $550 Million by 2029, Driven by Collaborative Opportunities and Data Privacy Solutions

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Swiss RegTech Market

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Blockchain Life 2024: The Visionary and Tectum CEO Alex Guseff Among Featured Speakers

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DLA Piper’s crypto tokenization engine TOKO relaunches as Scintilla

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Following a management buy-out by the management team at TOKO FZE, the business has been rebranded as Scintilla, the revolutionary platform providing on-chain solutions and services to make investments more inclusive, accessible, and efficient. Having been developed within DLA Piper’s Law& innovation portfolio, TOKO – now Scintilla has a fresh brand identity, new leadership, and innovative product offerings. Scintilla is set to reshape the future of finance by enabling businesses to unlock the power of blockchain technology across various asset classes, with DLA Piper remaining as a minority shareholder.

Regulated by Dubai’s Virtual Assets Regulatory Authority (VARA), Scintilla is one of the first digital asset companies to gain full market licenses, marking a significant milestone in the sector’s landscape. Being a regulated entity underscores Scintilla’s commitment to the highest standards of compliance and security while pioneering new solutions for tokenization in the global market.

Innovating Finance Through Tokenization

Scintilla offers a comprehensive suite of tokenization services designed to bring liquidity, transparency, and efficiency to traditional finance sectors. From tokenized financial products, and real estate all the way to new legal funding products, Scintilla’s digital asset solutions enable clients to tokenize assets that were previously inaccessible to investors or illiquid.

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Scintilla’s services include:

Advisory Services: The gateway to successful market entry. From initial opportunity assessment to strategic development of game-changing tokenization-based solutions.

Use Case Development: Bringing products to life. From initial POC development and iteration towards MVP all the way through to the full market launch.

Broker/Dealer Services: Creating new markets. Regulated primary market trading, ensuring the highest levels of trust and security within the tokenization space.

Exchange Services: Universal participation. Seamless, secure secondary trading of tokenized assets, with industry-leading technology and compliance standards.

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Scintilla is uniquely positioned to capitalize on the confluence of Dubai’s world-leading regulatory environment, cutting-edge technology, and the burgeoning RWA market.

A New Era for Scintilla

The relaunch of Scintilla represents more than just a rebranding—it signifies the company’s growing ambition to lead in the digital asset space. With an expanded team of industry experts, including continuing Board representation from DLA Piper, and a clear strategic vision, Scintilla is set to drive the adoption of tokenization in traditional financial markets.

“Our relaunch marks the beginning of an exciting new chapter for Scintilla and the wider industry. We are committed to pushing the boundaries of what is possible in digital finance while ensuring our solutions are underpinned by strong regulatory compliance,” said Tim Popplewell, CEO of Scintilla. “With our new suite of products and services, we are empowering investors to transform the way they manage and access value.”

Jean-Pierre Douglas-Henry, Managing Director, Sustainability and Resilience, DLA Piper added: “Innovation is a key strand in our business strategy. As our business focuses on developing and nurturing innovations that add significant value to our clients through our Law& innovation program, it is fantastic to see this solution spun out into the thriving digital asset space for the next stage of its growth and development.”

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