Hawaii Senate Committee Recommends Creating Task Force to Regulate Crypto

The quest for crypto regulation continues to take shape globally as more governments look to create regulatory frameworks for digital assets. Hawaii could be the latest as the state’s Senate committee has recommended a task force to regulate crypto and blockchain technology. 

Hawaii legislature approves creation of crypto task force

The crypto task force was approved by two committees of the Hawaii State Legislature, namely Ways and Means (WAM) and Commerce and Consumer Protection (CPN). 

According to the report, the specialized task force will work towards exploring the use and regulation of the crypto ecosystem in the state. This was confirmed in a letter addressed to the President of the Hawaii State Senate, Ron Kouchi. 

Within the letter, legislative members Donovan Dela Cruz and Ron Baker wrote in support of creating a new task force called the ‘’Blockchain and Cryptocurrency Task Force’’ that was first proposed earlier this year in bill SB2695. 

The bill titled ‘’A Bill for an act relating to cryptocurrency’’ intended to establish a task force within the state’s budget and finance department to review and collate data on crypto and blockchain. 

The task force would also be mandated to submit findings and potential regulations to the State Capital, including creating a plan to foster blockchain adoption within the public and private sectors. 

The letter also noted that the creation of the task force would pave the way for the state of Hawaii to become a major hub for blockchain technology. It further noted that: “This measure establishes a task force to create a master plan to explore the use and regulation of blockchain and cryptocurrency.” 

According to the bill, the task force will consist of 11 members, including representatives of a cryptocurrency exchange, a blockchain payment solution company and a crypto association who the governor will appoint. 

The next step is for the bill to be signed into law. Once signed, the blockchain and crypto task force will need to submit a report of its recommendations and research within twenty days before the regular session of 2023. 

Blockchain technology regulation continues to grow globally. 

The growth of cryptocurrencies has continued to attract the attention of regulations globally. Countries like the US, South Korea and Japan have developed extensive blockchain regulations that have provided a clear framework for adoption. 

Unsurprisingly this has spread to developing countries, with India announcing a 30% tax earlier for crypto trading. The Asian powerhouse also recently mandated crypto exchanges to store customers’ data for five years as part of regulatory requirements. 

These developments have paved the way for institutions to invest in the crypto industry and provided legitimacy to blockchain technology. Fortune 500 companies like Tesla also got in the act by purchasing $1.5 billion worth of bitcoin, currently valued at $2 billion. Bakkt also recently inked a deal with an American bank to offer crypto services.

However, countries like Nigeria have refused to implement crypto laws despite these well-publicized moves. As a result, a blanket ban on crypto remains in the African nation despite boasting the biggest crypto market in the region.