HB 2108 Summary: Special Purpose Digital Currency Licensure

• Establishes a new licensing program administered by Hawaii's Division of Financial Institutions to regulate special purpose digital currency companies, replacing the previous digital currency innovation lab sandbox program.

• Requires digital currency businesses to obtain a license before engaging in activities including exchanging, transferring, storing digital currency, or administering digital currency with control over redemption.

• Sets licensing fees at $9,000 initial application fee, $1,000 renewal fee, and quarterly transaction-based assessments ranging from $2,500 to $12,500 depending on transaction volume, plus a minimum $500,000 surety bond.

• Mandates anti-money laundering programs, cybersecurity protections, customer due diligence, suspicious activity reporting, and maintenance of detailed transaction records for five years.

• Provides exemptions for certain activities including those regulated by federal securities/commodity laws, blockchain infrastructure providers, non-custodial activities using government-backed currencies, and traditional financial institutions.