PRESS RELEASE: Hawaii Digital Currency Innovation Lab Concludes, Public Reminded to Be Aware of Risks When Investing in Digital Currency
Published on June 28, 2024 in Latest news from the department, Newsroom
DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS
COMMERCIAL RELATIONS DEPARTMENT
Dr. Josh Green
GOVERNOR | THE GOVERNOR
NADINE AND ANDO
DIRECTOR | THE EXECUTIVE OFFICER
Iris Ikeda
BANKING COMMISSIONER
FOR IMMEDIATE RELEASE
June 28, 2024
Hawaii'Digital Currency Innovation Lab concludes
Remembered to the public toBe aware of the risks when investing in digital currency
HONOLULU— The Hawaii Department of Commerce and Consumer Affairs, Division of Financial Institutions (DFI), and Hawaii Technology Development Corporation (HTDC) remind the public that the Digital Currency Innovation Lab (DCIL) concludes on June 30, 2024. This collaborative research project initiated in 2020 was created to explore the landscape of digital currency activity within the state., while evaluating the regulatory framework required for companies specializing in digital currency (also known as cryptocurrency).
Project results indicate that digital currency companies will no longer need a Hawaii-issued money transmission license to conduct business within the state. Companies will be able to continue their transaction activities as an unregulated business. However, such companies will be responsible for complying with all applicable federal licensing or registration requirements, including those established by the Financial Crimes Enforcement Network., National Stock Market Commission, and the Financial Industry Regulatory Authority, as well as any relevant federal regulatory requirements involving consumer protection, anti-money laundering measures, etc.
“As we move from this study to a broader understanding of digital currency, our focus will continue to be on ensuring that consumers are aware of the risks associated with this issue. We urge the public to remain informed when using any form of digital currency,” said Banking Commissioner Iris Ikeda.
Digital currency businesses operating in Hawaii must continue to comply with federal regulations relevant to their activities. Consumers are encouraged to remain vigilant and proactive when dealing with digital currency businesses and unregulated marketplaces.
This week, the Federal Bureau of Investigation issued a warning about a new tactic used by criminals to defraud victims of cryptocurrency scams. Scammers pose as lawyers from fake law firms on social media and messaging platforms and offer to help victims recover their funds.
They claim to be authorized to investigate such cases and may reference their involvement with the FBI, Consumer Financial Protection Bureau, or other government agencies to appear legitimate. Between February 2023 and February 2024, victims of cryptocurrency scams exploited by these fictitious law firms reported losses exceeding $9.9 million to the FBI's Internet Crime Complaint Center (IC3).
TIPS TO PROTECT YOURSELF
- Beware of advertisements for cryptocurrency recovery services. Research the advertised company and be careful if it uses vague language, has a minimal online presence, and makes promises about the ability to recover funds.
- If you are contacted by an unknown individual claiming to be able to recover stolen cryptocurrency, do not reveal any financial or personally identifiable information and do not send money.
- Authorities do not charge victims a fee to investigate crimes. If anyone claims to have an affiliation with the FBI, contact your FBI field office to confirm.
The FBI also issued a alert warning the public against the use of cryptocurrency money transmission services that are not registered as Money Services Businesses (MSBs) in accordance with United States federal law. Cryptocurrency money transmission services are being investigated and law enforcement operations were conducted against cryptocurrency services that were not licensed in accordance with federal law. Using a service that does not meet its legal obligations may put you at risk of losing access to funds after law enforcement operations target those companies.
Victims of cryptocurrency schemes or other fraudulent schemes are encouraged to file a report with the FBI's Internet Crime Complaint Center at www.ic3.gov.
Additional guidance and information from the Federal Trade Commission on "What to Know About Cryptocurrencies and Scams" is available at https://consumer.ftc.gov/articles/what-know-about-cryptocurrency-and-scams.
More information about the Digital Currency Innovation Lab is available at https://www.htdc.org/digital-currency-innovation-lab/.
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Media Contact:
William Nhieu
Communications Officer
Department of Commerce and Consumer Affairs
Email: [email protected]
Phone: 808-586-7582
