Digital currency exchange Coinbase said today that it will stop serving customers in Hawaii following regulatory changes in the US state.The startup said that it received word last September from the Hawaii Division of Financial Institutions that it would be required to hold cash reserves equal to any digital currency-denominated funds held for its customers.Citing the cost burden this requirement creates, Coinbase said that it would require its customers in Hawaii to close their accounts in the next 30 days and remove any funds they may be using the service to store.Further, Coinbase said that it would block new customer registrations from Hawaii, a policy decision it said would be "indefinite" in light of the regulatory concerns.However, Coinbase indicated that it could reopen its doors to customers in Hawaii should conditions improve, citing a push to create a blockchain working group in the state’s legislature as a positive development.The startup went on to say: “Although it comes as little consolation to Hawaii customers, Coinbase hopes to work with policymakers to either change the law or to encourage the DFI commissioner to revisit her existing policy discretion under Hawaii law.

We are heartened that members of the Hawaii State House of Representatives have recently introduced a bill that would create a digital currency and blockchain working group.” It’s not the first time that Coinbase has closed up shop in a US state following regulatory concerns.In June 2015, Coinbase cited a similar move by the Wyoming Division of Banking to require commensurate cash reserves when it stopped serving customers in the state.Disclosure: CoinDesk is a subsidiary of Digital Currency Group, which has an ownership stake in Coinbase.You can head back to our homepage, or check out some great posts.)submitted by π Rendered by PID 15524 on app-210 at 2017-06-24 11:50:04.220452+00:00 running 3522178 country code: SG.The recent news of Coinbase suspending its services to the residents of Hawaii took many by surprise.The cryptocurrency wallet and exchange services, one of the big names in the industry made the hard decision after the Division of Financial Institutions introduced a new regulation that classified the company has a money transmitter.

As per the new classification, Coinbase was not only required to get a license, but also match the value of bitcoins held on the platform with an equivalent fiat reserve.The regulation in question that forced Coinbase out of Hawaii seems to be flawed on many counts.For starters, the Hawaii DFI has directly equated Bitcoin with money, which is not really the case.Without a proper understanding of the asset, the business model followed by Bitcoin companies and the difference between money and bitcoin, the regulators have imposed hurdles to the development of a crypto-economy.bitcoin euro achat“While the state gives lip service to the idea that we foster high-tech companies in Hawaii, a careless or hostile regulatory environment for new technology tells entrepreneurs and investors that doing business in Hawaii comes with unnecessary hassles and risks.” A recent article on one of the news publications lists the differences between bitcoin exchanges and money transmitters.o'que e bitcoin

The author makes an attempt to present the case in such a way that everyone including the regulators can understand the cryptocurrency, the recently introduced cryptocurrency regulation and how the latter is affecting the former.The author takes an example of the Western Union, a money transmitter and compares with the business model of Coinbase.While a regulation requiring the money transmitter to maintain enough reserves makes sense for the Western Union, it may not hold good for cryptocurrency businesses.bitcoin p1In the case of Western Union, the money in physical form doesn’t change hands directly.ethereum salaryWhereas, bitcoin transactions are completely digital and it is transmitted to the recipient’s wallet in “almost” real-time and the very same tokens are received by the person on the other side.bitcoin alberta

The movement of Bitcoin is akin to sending money over mail, which is exempted by the money transmitter license.However, with a thirty-day deadline looming over the Coinbase customers’ heads to withdraw funds (and bitcoins) from their account, they are unsure about managing it.The Hawaii DFI’s regulations are expected to stay in effect for at least two years, stifling not only the cryptocurrency businesses in the state but also digital currency accepting merchants.bitcoin atm two wayThe recent regulations are expected to have far-reaching consequences, which could include tourism as well.Ref: CivilBeat | Image: ShutterstockIge Plans To Veto Bill To End Aquarium Fishing Alan McNarie: A Big Island Juggler With Leukemia Faces Deportation Honolulu Is Paying Back $1.45 Million In Federal Housing Funds Honolulu Rail Project’s Budget Increased By 11.5 Percent Honolulu Residents Get Raw Deal With Bikeshare

Status and feedback Based on user feedback (FAQ): Operator details Operator's name: Edward Deleon Hickman Support phone: 908 675 5339 Support email: edh@anatha.tech Location City: Honolulu Location: Hawaiian Island Stamp & Coin Address:1111 Bishop StHonolulu, HI 96813United States Open hours:Mon-Fri: 9am - 5pmSat: 10am - 4pm Bitcoin machine details ATM Type: Skyhook Direction: Fiat → Crypto Supported coins: Fees: 7.5% Limits: 900 USD per transaction Details: This Skyhook Bitcoin ATM is located in Hawaii Islands Stamp and Coin in Honolulu.This machine is operated by Pacific Blockchain.WARNING!/HawaiiOlelo/status/660578514937192449 Nearest Cheapest Buy Nearest locations Vape Kings Serramonte Center Mid City Market & Liquor Kwik & Convenient Borderlands Bookstore Cafe Check all Bitcoin ATMs in Honolulu or Bitcoin ATMs in United States.Bitcoin Hawaii @BitcoinHawaii Bitcoin Hawaii @BitcoinHawaii Bitcoin Evangelists in Hawai`i 6 Photos and videos Photos and videos Tweets & replies Media You blocked @BitcoinHawaii Are you sure you want to view these Tweets?