Two Bills in Hawaii to Capture Virtual Currency

Hawaiian lawmakers are aiming to address cryptocurrency by updating money transmission law in the state
31 January 2018   597

Last week the Hawaiian Senate introduced two bills which are aiming to define and include cryptocurrencies within domain of the state's Money Transmitters Act.

If passed, two bills, HI SB2853 and HI SB3082, would require a license to transmit cryptocurrencies. According to those two bills, persons or businesses must issue a warning to consumers prior to enabling such transactions.

Nevertheless, the legislation exempts exchanges from section 489D-8 of the Act, mandating money transmitters to maintain reserved cash which is equal to the virtual funds.

However, the bill HI SB3082 warns that cryptocurrency is not backed by any government. The cryptocurrency can potentially be lost due to a computer failure, malicious software attack, lack of security, loss of a private key, change in value or closure of a cryptocurrency exchange company.

Both bills were published in 2017 as a guide for states in order to enact policies to this new fast-developing technology.

Binance to Join Forces With IdentityMind

IdentityMind provides exchanges with ability to comply with KYC\AML worldwide
26 March 2019   79

Binance announced an agreement with IdentityMind, which will help it ensure compliance with regulatory requirements and improve data security.

IdentityMind provides cryptocurrency exchanges with access to the platform, thanks to which they can monitor compliance with customer identification and anti-money laundering requirements in real time. This includes connecting new customers, managing their profiles and monitoring transactions.

The partnership between Binance and IdentityMind further strengthens our compliance capabilities and our commitment to re-invest in the blockchain ecosystem and grow it. We continue to evolve and enhance security systems while adhering to regulatory mandates in the countries we operate in. The goal is to foster greater trust among financial institutions worldwide.

Samuel Lim

Chief Compliance Officer, Binance

Last year, Bloomberg wrote about the Binance user identification system as the least strict in the entire industry, and linked the “level of anonymity” provided by the exchange with the risks of money laundering and market manipulation.

In October, Binance entered into an agreement with a supplier of transaction analysis software on the blockchains Chainalysis, and in November with Refinitiv, which developed an automated solution for client verification.

Whether the ordinary users of the platform will feel the impact of the integration of IdentityMind tools on themselves, the exchange does not specify.