The Hawaii Department of Commerce and Consumer Affairs, in collaboration with the Hawaii Technology Development Authority, is urging citizens to be aware of the risks of investing in cryptocurrencies as the Digital Currency Innovation Lab closes this weekend.
The Digital Currency Innovation Lab (DCIL) will conclude on Sunday, June 30. The project was launched in 2020 with an aim to “examine the status of digital currency activities in the state and assess the regulatory framework required for companies specializing in digital currencies (also known as cryptocurrencies),” the ministry said.
In a recent press release, the ministry said:
According to the project’s findings, digital currency companies will no longer be required to obtain state-issued money transmission licenses to operate in Hawaii, and will be able to continue their trading activities as unregulated businesses.
However, such companies will remain responsible for complying with any applicable federal licensing or registration requirements, including those set forth by the Financial Crimes Enforcement Network, the Securities and Exchange Commission, and the Financial Industry Regulatory Authority, as well as any relevant federal regulatory requirements, including consumer protection, anti-money laundering, etc.
“As we move from this investigation to a broader understanding of digital currencies, our focus remains on ensuring consumers are aware of the risks associated with this issue. We urge the public to stay informed before utilizing any form of digital currency,” banking commissioner Iris Ikeda said.
Digital currency companies operating in Hawaii must continue to comply with federal regulations related to their activities, and consumers are encouraged to remain vigilant and proactive when transacting with digital currency companies and unregulated marketplaces.
This week, the F.B.A. Issued a warning A new tactic criminals are using to scam victims of cryptocurrency scams: Scammers are posing as lawyers from fake law firms on social media and messaging platforms, offering to help victims get their funds back.
They claim to have the authority to investigate such cases and may cite involvement with the FBI, the 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 of over $9.9 million to the FBI’s Internet Crime Complaint Center (IC3).
Tips to protect yourself
- Be wary of advertisements for cryptocurrency recovery services: research the company being advertised and be wary if the company uses vague language, has little online presence, or promises to recover your funds.
- If you are contacted by an unknown individual claiming to be able to recover your stolen cryptocurrency, do not disclose any financial or personally identifying information or send any money.
- Law enforcement agencies do not charge victims for the cost of criminal investigations. If someone claims to have ties to the FBI, Local FBI office To confirm.
The FBI also Issue a warning to the public You are prohibited from using cryptocurrency transfer services that are not registered as a Money Services Business (MSB) in accordance with U.S. federal law. Cryptocurrency transfer services are under investigation and law enforcement actions have been taken against cryptocurrency services that are not licensed in accordance with federal law. Using services that do not comply with legal obligations puts you at risk of losing access to your funds after law enforcement actions target those businesses.
Victims of cryptocurrency scams or any other scams are encouraged to report them to the FBI’s Internet Crime Complaint Center. Click here for details.
Guidance and additional information from the Federal Trade Commission on “What you need to know about cryptocurrencies and scams” is available here: https://consumer.ftc.gov/articles/what-know-about-cryptocurrency-and-scams.
For more information about the Digital Currency Innovation Lab, please visit: https://www.htdc.org/digital-currency-innovation-lab/.
