H.B. 70 Summary

• Establishes the Uniform Regulation of Virtual-Currency Businesses Act to license and regulate virtual-currency businesses operating in Hawaii, administered by the Division of Financial Institutions

• Requires licensees and registrants to obtain licenses from the division or qualify under reciprocity agreements, with registration option for businesses with annual activity under $35,000

• Mandates minimum $25,000 net worth, security deposits, and comprehensive compliance programs including information security, anti-fraud, anti-money laundering, and disaster recovery procedures

• Requires licensees and registrants to provide consumers with detailed disclosures on fees, insurance coverage, transfer irrevocability, liability, and transaction confirmations

• Adopts the Uniform Supplemental Commercial Law treating virtual currency held by licensees as securities accounts under the Uniform Commercial Code for consumer protection