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   518

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 Partner with Chainalysis for AML

Use of Chainalysis KYT solution will allow to compile with KYC- and AML-norms and also simplify the process of opening bank accounts
18 October 2018   83

The largest exchange by daily trading volume Binance uses software from Chainalysis, called Chainalysis KYT [know your transaction], to monitor real-time transactions and identify transfers related to criminal activity. This is stated in a joint press release.

Cryptocurrency businesses of all sizes face the same core challenge: earning the trust of regulators, financial institutions and users. We expect many to follow Binance's lead to build world-class AML compliance programs to satisfy regulators globally and build trust with major financial institutions.

Jonathan Levin

Co-Founder and COO, Chainalysis

Thus, the use of software from Chainalysis not only guarantee compliance with the KYC- and AML-norms, but also simplify the process of opening bank accounts.

By working with Chainalysis, we are able to continue building a foundational compliance program that enables the next phase of our growth. Our vision is to provide the infrastructure for a blockchain ecosystem and increase the freedom of money globally, while adhering to regulatory mandates in the countries we serve.

Wei Zhou

CFO, Binance

Chainalysis KYT release was held in April.