S.B. 3025 Summary

• Establishes a licensing program for special purpose digital currency companies under new chapter 22 of Hawaii Revised Statutes, effective January 1, 2023, replacing the digital currency innovation lab pilot program.

• Requires licensees to maintain $500,000 minimum tangible net worth, obtain surety bonds ($500,000 minimum), pay initial application fees ($9,000) and renewal fees ($1,000), plus quarterly assessments based on transaction volume ($2,500-$12,500).

• Mandates anti-money laundering programs, cybersecurity requirements, customer due diligence, recordkeeping for five years, and specific disclosures to consumers regarding fees, insurance coverage, and transaction irrevocability.

• Grants the Division of Financial Institutions authority to investigate, examine, deny, suspend, or revoke licenses; assess civil penalties up to $10,000 per violation; and issue cease and desist orders against unlicensed operators.

• Allows companies participating in the digital currency innovation lab as of June 30, 2022, to continue operations for six months if they submit complete license applications by March 1, 2023, with appropriation of $500,000 for implementation.