DCIL FAQs updated 08.26.21
Frequently asked Questions about the
Digital Currency Innovation Lab (DCIL)
DFI (Division of Financial Institutions) licenses, supervises, and examines money transmitter companies pursuant to the Hawaii Money Transmitters Act, Chapter 489D, Hawaii Revised Statutes (“HRS”). DFI wanted to address concerns raised by individuals and digital currency companies that such companies could not do business in Hawaii because they could not meet statutory requirements for money transmitter licensure under Chapter 489D, HRS. The DCIL partnership was created between DFI and HTDC (Hawaii Technology Development Corporation) laying the foundation for an appropriate evaluation of digital currency deployment in the State by leveraging DFI’s knowledge of financial institutions and HTDC’s proficiency in technological developments and mission to drive technology-based economic development.
The DCIL is a two-year program administered by HTDC and DFI (“Program”), with activities scheduled to terminate on June 30, 2022 (the “end date”). Digital currency companies admitted into the program (“Participating Companies”) can conduct digital currency transactions under a “no action” agreement with DFI without enforcement action for what DFI would consider unlicensed activity under Chapter 489D, HRS.
The following are common general questions and responses. If you have specific questions, please contact us at [email protected].
- I want to buy digital currency. Can I use any digital currency company?
DFI: The DCIL is a two-year program to evaluate whether the digital currency industry should be licensed or not. The Participating Companies are allowed to conduct digital currency transactions with their customers. See the link to the DCIL 2020 and 2021 participants and the Program description on DFI’s webpage.
- What happens at the end of the Program (June 30, 2022)? Will customers of the Participating Companies have to sell all their digital currency before or after the Program closes?
DFI: The DCIL is a two-year program with activities scheduled to terminate on June 30, 2022 (“activity end date”). Participating Companies will have until December 31, 2022, to disengage customers, return funds, close accounts and cease operating (“closure date”). Accordingly, yes customers will need to withdraw their funds in accordance with the Participating Company’s disengagement and closure schedule.
- Can customers make more deposits and withdrawals with the Participating Company once the Program closes?
DFI: No, after the Program’s activity end date, customers may not make additional deposit transactions. Customers may only make withdrawals to close the account in accordance with the Participating Company’s disengagement and closure schedule.
- After the Program is closed, can customers keep the digital currency that was purchased during the Program, then withdraw the digital currency at any later time?
DFI: No, accounts must be closed at the end of the Program in accordance with the Participating Company’s disengagement and closure schedule.
- Will the Program be extended after 2022?
DFI: No extensions to the Program are scheduled. The Participating Companies will need to cease activities by the activity end date, and cease operating in Hawaii by the closure date.
- Will the Participating Companies ever be allowed to operate permanently in Hawaii, so that Hawaii customers can continue to purchase digital currencies?
DFI: This depends on whether the State legislature passes law to enable reasonable licensing of this industry or exempt it from licensing.