HB 2384 Summary

• Creates a new digital currency licensing program regulated by Hawaii's Division of Financial Institutions to replace the Digital Currency Innovation Lab program, effective January 1, 2023.

• Requires special purpose digital currency companies to obtain a license to engage in digital currency business activities including exchanging, transferring, storing digital currency, and digital currency administration.

• Establishes initial application fee of $9,000, annual renewal fee of $7,000, and minimum $500,000 surety bond requirement; all fees deposited into compliance resolution fund.

• Requires licensees to provide consumer disclosures regarding fees, lack of insurance coverage, transaction irrevocability, and that digital currency is not legal tender; must maintain records for 7 years.

• Appropriates $500,000 for fiscal year 2022-2023 to hire three examiners and implement the licensing program; authorizes up to $125,000 annually for Hawaii Technology Development Corporation to study digital currency use cases.