Hawaii Senate Files Bill Allows Banks Offer Cryptocurrency Custodial Services Hawaii crypto custody.

Five lawmakers in Hawaii, a state in the US, have proposed a bill that could enable banks to hold and manage digital assets in their custody. The bill, Senate Bill (S.B.) 2594 was introduced last week and has passed its first reading.

Once approved, the legislation would make it legal for Hawaiian banks to hold digital assets such as “virtual currencies, digital securities, open blockchain tokens and digital consumer assets” on behalf of their customers.

Part of the SB2594 put forward to the authorization of law courts to hear claims concerning digital assets. Hence, if passed, would equally enable Hawaiian courts to handle digital asset-related cases.

The development is coming at a good time as it could turn things around for crypto-related businesses in the state, given that, Hawaii has been among the regions with stringent requirements for crypto firms.

For instance, Coinbase, one of the leading crypto exchanges had to stop its operations in the state, due to a mandate by the state’s Division of Financial Institutions in 2017, asking crypto-licensed businesses to hold cash reserves that are equal to customers’ crypto holdings in their custody.

The bill, however, has a tendency to level up the path for cryptocurrencies,and digital assets in general, as it would probably reinforce the steps by banks in providing support for these assets.

Nonetheless, banks will have to maintain reserves like a trusted company, according to the document citing section 412:8–202, which states:

Every trust company shall have on hand at all times in actual money of the United States an amount equal to at least twelve per cent of all agency credit balances payable on demand and accounts payable, plus at least five per cent of all agency credit balances payable on time; provided that such reserve may be deposited payable on demand in banks and other trust companies approved by the commissioner or maybe cash in the vaults of the trust company.

Several lawmakers of the US state of Hawaii immediately proposed allowing local banks to store “digital securities”, “virtual assets” and other “open blockchain tokens.”

Use our XcelPay Wallet in order to see alladvantages of Blockchain Technologies!

XcelPay Wallet is a merchant POS, digital payment wallet and crypto payment gateway which is integrated into an easy to use crypto wallet that is empowered for both mobile and tablet use, makes sure that transferring and receiving payments in crypto is a secure process. XcelPay Wallet aims to cut out undesirable middlemen, bank/card transaction fees, currency conversion fees that produce a negative effect on the retailer’s and consumer’s margins. The Wallet allows you to top-up mobile phone plans with 900 different carrier services and in 160 countries, with Ethereum and Bitcoin and other Cryptocurrencies.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s