SB 945 Summary: Special Purpose Digital Currency Licensure

• Establishes a new licensing program for special purpose digital currency companies in Hawaii, replacing the temporary digital currency innovation lab with permanent regulatory framework under Division of Financial Institutions.

• Requires digital currency businesses to obtain a license before engaging in activities like exchanging, transferring, storing digital currency or digital currency administration, with initial application fee of $9,000 and annual renewal fees based on transaction volume ($2,500-$12,500 quarterly).

• Mandates licensees maintain minimum surety bonds ($500,000-$1,000,000), establish anti-money laundering programs compliant with federal law, implement cybersecurity programs, and maintain detailed records of all transactions.

• Grants Commissioner of Financial Institutions authority to investigate, examine, and enforce compliance through civil penalties up to $10,000 per violation, license suspension/revocation, and criminal penalties for unlicensed operation or false statements.

• Effective January 1, 2025 for licensing provisions; companies in the digital currency innovation lab may continue operations through March 1, 2025 application deadline with six-month exemption period while applications are reviewed.