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Hawaii Senators Files Bill To Allow Banks To Act As Crypto Custodian

Jyoti Singh by Jyoti Singh - 07:13 PM Jan 24, 2020
Hawaii Senators Files Bill To Allow Banks To Act As Crypto Custodian

Recently, a bill was introduced by the five lawmakers from the US senate of Hawaii. The bill appealed to the authorized banks in the country (Hawaii) to provide custody for cryptocurrencies. According to the report, the Hawaiian Banks could hold digital assets like virtual currencies, digital securities and open blockchain token, for its customers, if the Senate bill 2594 passes. It was reported that a few weeks ago, four Democratic Senators along with a Republican Senator filed the bill. After passing the first reading the bill was referred to the Senate Committee on Commerce, Consumer Protection and Health (CPH) and the Senate Committee of Judiciary (JDC).

Hawaiian Banks Might Hold Digital Assets Of Its Customers

According to a report, for very long, the crypto-focused money services had struggled to function in Hawaii, because the Hawaii Division of Financial Institution needed crypto-licensed entities to hold cash reserves equal to their crypto holdings.  The report mentioned that under section 412:8-202 the new bill also required the reserves to be maintained by the bank. According to the section, “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 of 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.” The report stated that the banks could also be authorized by the customers to transact with their cryptocurrencies. The report further stated that the bank and the customer would have to agree in writing for the authorization and any kind of ambiguity regarding it would be resolved in favour of the customer.

About The Author
Jyoti Singh

Jyoti SinghGraduated from GGSIPU and did PG Diploma in English Journalism from IIMC. Last worked at Business News and Information Services Ltd. for more than one and a half years as a sub-editor.

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