RELEASE: Hawai‘i Digital Currency Innovation Lab Concludes, Public Reminded to be Aware of Risks While Investing in Digital Currency
Posted on Jun 28, 2024 in Latest Department News, Newsroom
DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS
KA ʻOIHANA PILI KĀLEPA
JOSH GREEN, M.D.
GOVERNOR | KE KIAʻĀINA
NADINE Y. ANDO
DIRECTOR | KA LUNA HOʻOKELE
IRIS IKEDA
BANKING COMMISSIONER
FOR IMMEDIATE RELEASE
June 28, 2024
Hawai‘i Digital Currency Innovation Lab Concludes
Public Reminded to be Aware of Risks While Investing in Digital Currency
HONOLULU — The Hawai‘i Division of Commerce and Shopper Affairs Division of Monetary Establishments (DFI) and the Hawai‘i Know-how Improvement Company (HTDC) remind the general public that the Digital Currency Innovation Lab (DCIL) concludes on June 30, 2024. This collaborative analysis undertaking initiated in 2020 was created to discover the panorama of digital foreign money exercise throughout the state, whereas assessing the regulatory framework required for corporations specializing in digital foreign money (often known as cryptocurrency).
The findings from the undertaking point out that digital foreign money corporations will not require a Hawai‘i-issued cash transmitter license to conduct enterprise throughout the state. The businesses will be in a position to proceed transaction exercise as an unregulated enterprise. Nevertheless, such corporations will be accountable for complying with any relevant federal licensing or registration necessities, together with these set forth by the Monetary Crimes Enforcement Community, Securities and Change Fee, and the Monetary Trade Regulatory Authority, in addition to any pertinent federal regulatory necessities involving shopper safety, anti-money laundering measures, and so forth.
“As we transition from this research to a broader understanding of digital foreign money, our focus will stay on guaranteeing that buyers are conscious of the dangers related to this matter. We urge the general public to keep knowledgeable when using any kind of digital foreign money,” mentioned Banking Commissioner Iris Ikeda.
Digital foreign money corporations working in Hawai‘i ought to proceed to adhere to federal rules related to their actions. Customers are inspired to stay vigilant and proactive when coping with digital foreign money corporations and unregulated markets.
This week, the Federal Bureau of Investigation issued a warning a couple of new tactic utilized by criminals to defraud victims of cryptocurrency scams. Fraudsters are posing as attorneys from faux legislation corporations on social media and messaging platforms, providing to assist victims recuperate their funds.
They declare to be licensed to examine such instances and will reference involvement with the FBI, Shopper Monetary Safety Bureau, or different authorities businesses to seem professional. Between February 2023 and February 2024, victims of cryptocurrency scams exploited by these fictitious legislation corporations, reported losses exceeding $9.9 million to the FBI’s Web Crime Grievance Heart (IC3).
TIPS TO PROTECT YOURSELF
- Be cautious of ads for cryptocurrency restoration providers. Analysis the marketed firm and beware if the corporate makes use of imprecise language, has a minimal on-line presence, and makes guarantees concerning a capability to recuperate funds.
- If an unknown particular person contacts you and claims to be in a position to recuperate stolen cryptocurrency, don’t launch any monetary or private figuring out info and don’t ship cash.
- Regulation enforcement doesn’t cost victims a payment for investigating crimes. If somebody claims an affiliation with the FBI, contact your local FBI field office to affirm.
The FBI additionally issued an alert advising the public in opposition to utilizing cryptocurrency cash transmitting providers that aren’t registered as Cash Providers Companies (MSB) in accordance to United States federal legislation. Cryptocurrency cash transmitting providers are being investigated and legislation enforcement operations have been performed in opposition to cryptocurrency providers which weren’t licensed in accordance with federal legislation. Utilizing a service that doesn’t adjust to its authorized obligations could put you in danger of dropping entry to funds after legislation enforcement operations goal these companies.
Victims of cryptocurrency schemes or different fraudulent schemes are inspired to file a report with the FBI’s Web Crime Grievance Heart at www.ic3.gov.
Steerage and extra info from the Federal Commerce Fee on ‘What to Know About Cryptocurrency and Scams’ is accessible at https://consumer.ftc.gov/articles/what-know-about-cryptocurrency-and-scams.
Extra info on the Digital Currency Innovation Lab is accessible at https://www.htdc.org/digital-currency-innovation-lab/.
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Media Contact:
William Nhieu
Communications Officer
Division of Commerce and Shopper Affairs
E mail: [email protected]
Cellphone: 808-586-7582