HB 70 Summary

• Adopts the Uniform Regulation of Virtual-Currency Businesses Act establishing licensing and registration requirements for persons engaging in virtual-currency business activities with Hawaii residents through the Division of Financial Institutions.

• Requires virtual-currency businesses to obtain either a state license, reciprocal license from another state, or register with the division depending on annual transaction volume, with a $35,000 annual threshold for registration eligibility.

• Mandates minimum net worth of $25,000, security deposits, and comprehensive compliance programs including anti-money laundering, anti-fraud, cybersecurity, and disaster recovery policies.

• Establishes consumer protections including mandatory disclosures of fees, transaction irrevocability, insurance coverage, and error resolution procedures before establishing customer relationships.

• Creates enforcement authority for the division to suspend or revoke licenses, assess civil penalties up to $50,000 per day for unlicensed activity, and incorporates virtual-currency accounts under Article 8 commercial law protections.