SB3082 Summary: Virtual Currency Regulation

• Adopts the Uniform Regulation of Virtual Currency Businesses Act, creating comprehensive state licensing and registration requirements for persons engaging in virtual currency business activities with Hawaii residents.

• Requires virtual currency businesses to obtain a license from the Division of Financial Institutions, maintain minimum net worth of $25,000, post security/bonds, and comply with strict operational, security, and anti-money laundering standards.

• Establishes a registration alternative for smaller operations with annual virtual currency business activity under $35,000, with simplified compliance requirements and a two-year maximum duration.

• Amends the Money Transmitters Act (Chapter 489D) to expressly include virtual currency transmission and storage activities, requiring licensees to maintain like-kind virtual currency reserves and provide consumer risk disclosures.

• Mandates licensees provide customers with written warnings that virtual currency is not backed by government, not legal tender, not FDIC-insured, and carries risks of total loss due to theft, exchange failure, or value fluctuation.