Wednesday, June 29, 2022

Can You Buy Bitcoin In Hawaii

Buy Bitcoins In Hawaii

How to Buy Bitcoin from Hawaii SAFELY! (Step by Step)

Buying Bitcoin in Hawaii is possible, legal, but slightly less diverse in terms of available exchanges. This is due to strict regulations in place that make it difficult and impractical for exchanges to obtain licences. However, starting last year Hawaii launched a new program that allowed participating members to operate their crypto exchange services without the need of a money transmitter license.

With that being established, lets take a look at some commonly asked questions and discussed topics about Bitcoin in Hawaii.

What Coinbase Alternatives Are There For Hawaii

Coinbase is one of the biggest online cryptocurrency exchange platforms, but it is currently not available in Hawaii for regulatory reasons.

What makes Coinbase one of the most popular exchanges in the world is its simplicity, the variety of coins, and the ability to deposit and withdraw your cryptocurrency.

With those strengths being established, here are some Coinbase alternatives and how they compare with the crypto exchange giant:

  • CEX.io: CEX is one of the best alternatives for Coinbase. It offers as many if not more coins than Coinbase, and has a similar, simple user-interface that Coinbase users love.
  • Crypto.com: The Crypto.com App offers over 100 crypto available for buying and selling, and while it differs in design from Coinbase, it maintains a simple user-interface that is easy to navigate. Users can also apply to a Crypto.com Visa card that they can use to shop and earn up to 8% back on spending in CRO.
  • Gemini: Gemini is another exchange with which Hawaiian users can buy and sell crypto, like every platform listed so far, users can deposit and withdraw their crypto to and from their Gemini accounts. Besides trading with over 40 coins, users can also pay with crypto at over 30,000 retail stores across the United States without any fees using Gemini Pay.

While other exchanges do exist that support Hawaii, they lack in one or more areas where Coinbase shines, and for that reason, cannot be considered a good enough alternative.

References:

How To Buy Bitcoin Cash

If youre interested in buying Bitcoin Cash, you can do it in a few different ways.

Since it was made for everyday purchases, people wanted to make it as easy to use as possible. That means that you can buy BCH with credit or debit cards, cash, bank deposits, wire transfers, decentralized exchanges, peer-to-peer sources, or even with another cryptocurrency.

Also Check: Should I Invest In Blockchain Technology

Is Bitcoin Illegal In Hawaii

Bitcoin is not illegal in Hawaii. It is just very hard for exchanges to operate in the state of Hawaii because of the reserve restrictions required by law. This makes purchasing Bitcoin more difficult than it is in other states. You are, however, allowed to own, buy, and sell Bitcoin if you can find others to trade with.

About the Author: Jordan Tuwiner

Jordan Tuwiner is the founder of BuyBitcoinWorldwide.com. His work has been featured in The Guardian, International Business Times, Forbes, VentureBeat, CoinDesk and many other top Bitcoin media outlets. His articles are read by millions of people each year looking for the best way to buy Bitcoin and crypto in their country.

He has also written extensively about the history, technology, and business of the crypto world. Jordan is also the creator of some of the internet’s most famous Bitcoin pages, including The Quotable Satoshi and Bitcoin Obituaries.

To learn more about Jordan, see his

Is Coinbase Available In Hawaii

How To Buy And Sell Bitcoin And Ethereum In Hawaii ...

At the present, no, Coinbase is not available in the state of Hawaii, stating that the regulatory policies set in place by the Hawaii Division of Financial Institutions render Coinbase operations impractical, costly and inefficient. Next best place to buy crypto in Hawaii is Crypto.com. Below are other options at your disposal:

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Where You Can Buy Cryptocurrency In Hawaii

However, Hawaii appears to have become far more welcoming towards cryptocurrencies in later years. In March 2020, the state announced a new digital currency regulatory sandbox initiative, which has allowed 12 cryptocurrency companies to offer services without having to abide by the aforementioned 2017 rules. These companies are:

  • BlockFi
  • ErisX
  • Robinhood Crypto

That said, a recent update seems to have excluded Robinhood. But still, that’s 11 in total to choose from when you’re ready to come back into the crypto market in Hawaii. Although it is a shame that those enthusiasts and investors in Hawaii missed out on the cheap prices and market exposure over the last few years, this is proof that things are getting better with crypto. Although cryptocurrencies were never banned there in the first place, this new sandbox should make things easier.

Register And Set Up An Account

The first step to getting started on BlockFi, and thus knowing how to buy cryptocurrency in Hawaii, is naturally trying to register and set up an account there. As with any online service, this process is very straightforward by following the on-screen prompts, from filling up your name, email address, phone number, a password, and an optional referral code. There’ll be the usual verification process, where you’ll need to click on a provided link sent to your email address and phone number.

Once that’s done, there are a few more things than you need to do compared to a regular exchange. Being a regulated cryptocurrency services provider, BlockFi has to comply with additional rules around AML and KYC compliance measures, which ordinary banks have to go through as well. This means you’ll have to provide extra information like your address, social security number , and denote the source of your funds.

There are also some additional account setup processes that are optional, but we do recommend that you turn them on. The first is 2FA or 2-factor authentication. This will make sure that only you, through one-time codes created and sent to an authentication app on your phone, can authorize certain actions on your BlockFi account, such as withdrawing funds. While simple, it adds a very robust layer of security on top of your password and makes your account harder to compromise.

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Why Doesnt Square Sell Bitcoin To Hawaii Users

Hawaii is one of the excluded states for Bitcoin buying in Square’s Cash App because of the rules in Hawaii involving sales of crypto. Square would need to hold the equivalent dollar amount of USD that you, as the user, hold in Bitcoin on their platform. This makes the service impossible to offer since the company would lose money.

Why Bitcoin Access Has Been Shut Down In Hawaii

Where can you buy Bitcoin in New York, Hawaii, Canada , Virgin islands, TX, and All 50 States?

The regulatory environment for new technology signals that doing business in Hawaii comes with unnecessary hassles and risks.

In 2009, a computer programmer created a new kind of money, a digital currency called bitcoin. It lets a user store bitcoins on a computer or phone and send them anywhere in the world with only minimal fees.

At first there was little interest outside of computer science circles, and bitcoins were worth very little. But acceptance has grown over time, and with greater interest, the value of a bitcoin has increased as well. Venture capital firms are now funding new startups focused on bitcoin and the underlying blockchain technology that records transactions.

In eight years, the price of a bitcoin, once worth a small fraction of a penny, has grown to nearly $1,200, around the same price as an ounce of gold.

There are now $19 billion worth of bitcoin in circulation, but amid this growing worldwide acceptance, the Hawaii DCCAs Department of Financial Institutions issued a regulatory advisory earlier this month that has effectively shut down access to bitcoin for Hawaii businesses and individual users.

In deciding to regulate a bitcoin exchange as a money transmitter, the DCCA followed only the state of Wyoming in imposing a restriction that forces bitcoin exchanges out of the market.

While it is a well-established asset, its legal classification is still murky and open to interpretation depending on how it is used.

Also Check: Can You Make Money Day Trading Crypto

Buy Bitcoin With Multiple Payment Methods On Localbitcoinscom

LocalBitcoins.com is a multi-vendor marketplace for buying Bitcoin. Using LocalBitcoins you dont purchasing Bitcoin from one company. Instead, multiple vendors have listings selling Bitcoin.

With LocalBitcoins the seller define which payment methods they will accept. You locate an offer that supports the payment method you want and contact the seller.

LocalBitcoins is great because it supports payment options you cant find anywhere else including PayPal, Skrill and Bank Transfers.

How Many Bitcoin Atms Are There In Hawaii

According to CoinATMRadar, there are two Bitcoin ATMs in Hawaii . Both of them are located in Honolulu, the state capital. Specifically, one Bitcoin ATM can be found at Hawaiian Island Stamp & Coin. Its a BitTeller ATM, which allows users to buy Bitcoin with cash. Buying fees are 15%, again according to CoinATMRadar.

The other Bitcoin ATM can be found at Vape Kings, which is a Lamassu ATM that enables the purchase of Bitcoin and Ethereum with fiat. Again, fees are reportedly 15%.

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What Are The Trading Fees

As with the deposits and withdrawals, Coinbase charges above-average fees. It’s also not very transparent about how much it charges. Fees are displayed when you make the transaction, and it is difficult to know how they are calculated and whether you’re getting the best rate.

For example, at time of writing, CoinMarketCap said 0.01 BTC was worth around $435. On Coinbase, that 0.01 BTC would have cost around $455 — a 3.99% card fee plus an additional undefined spread.

If you want to reduce costs, don’t be afraid to set up accounts with more than one exchange and preview the prices to make sure you get the best deal. You don’t have to deposit money to open an account, and if an exchange isn’t open about its costs, going this route can be the only way to compare apples with apples.

Does Binance Work In Hawaii

How To Buy Crypto In Hawaii

As of March 2021, Binance is not available to any customers living in Hawaii.

If this ever changes, we will update this page to reflect that change.

Keep in mind that no one in the United States can ever use Binance.com.

Binance has a special website for US based customers at Binance.us

Due to US regulations, Binance US is more strict about handling KYC and AML of new customers.

This just means that verification may take a little longer than it would on regular Binance.

The biggest difference between Binance US and regular Binance is the coin support as well as some of the features available to users.

Because of this, you shouldnt just look at the supported coins listed on binance.com and assume Binance US will sell it to you. Its a good idea to make sure that the Binance US coin support list shows the coin you want to buy.

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Can I Earn Interest

Coinbase recently had to shelve plans for a lending/earning product. Several exchanges lend out money through decentralized loans and use the proceeds to pay high interest rates on customer deposits. However, the SEC told Coinbase it could not go ahead with the launch.

As a result, Bitcoin holders cannot earn interest on their holdings. However, Coinbase does allow investors to stake a handful of coins. Staking involves tying up assets to help keep particular networks secure and can be a good way to earn rewards.

Cryptocom Vs Coinbase: Features

Both cryptocurrency exchanges provide a mobile app that works on Android and iOS devices along with a digital wallet. However, the platforms differ in their offerings. While Coinbase focuses on beginner education, Crypto.com, which started as a crypto payment platform, offers several products, such as Visa cards, crypto pay at checkout, and several ways to earn crypto.

Coinbase investors appreciate a massive library of information about trading cryptocurrency. By taking a course or viewing a lesson about various altcoins, users earn $3 to $10 in cryptocurrency. It also has a waitlist for an upcoming Coinbase Visa debit card where users can earn up to 4% in rewards on every purchase. Plus, Coinbase has a native coin, USD Coin . Users can hold onto USDC to earn a 0.15% annual percentage yield .

Unlike Coinbase, Crypto.com doesnt offer educational materials. Its knowledge base covers the basics of the platform, but investors must learn about trading crypto elsewhere. Instead, it concentrates on products:

  • Visa card: Several card tiers offering up to 8% CRO rewards on purchases, depending on the amount of CRO staked
  • Crypto Pay: Buy gift cards with crypto or select crypto pay at checkout at certain retailers to pay using crypto
  • Crypto Earn: Users can earn up to 12% on crypto deposits however, its typically not recommended to store currency on platforms
  • Crypto Credit: Non-U.S.-based users can borrow up to 50% of their crypto collateral with a Crypto loan

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How Are You Guys Buying Cryptocurrency In Hawaii

I can’t seem to find a good option since the laws changed.

First of all, why does this conversation keep getting downvoted everytime it comes up. No one is discussing why we are the only state that has created an impossible barrier for cryptocurrency.

For those of you who don’t know why this comes up, the HDCCA has said that all cryptocurrency brokers must carry enough cash to cover all the value of the coin carried by Hawaii residents, essentially shutting down any chance of a legal brokerage for this in Hawaii. There are definitely local residents that have lost out big time who would have dabbled in bitcoin and other currencies.

This law needs to be repealed. Brokerages like Coinbase are perfectly willing to comply with licensing regulations, like they do in many other jurisdictions, but they could never afford to keep cash reserves. This is just protecting incumbent industry, this is not protecting Hawaii consumers. Here is a Coinbase blog explaining more.

There are 3 viable options currently:

  • Uphold. They actually do back their crytpocurrencies with “real” assets so they can operate within Hawaii. This is probably the easiest Coinbase-like solution out there right now, but they only accept bank transfers with a daily limit of $500 so you’ll have to plan ahead.

  • EDIT: I don’t use the bitcoin ATMs because the fees are highway robbery and not any safer/cheaper than localbitcoins.com

    What You Need To Know About Investing In Cryptocurrencies In Hawaii

    You Can Buy a Tesla With Bitcoin

    HONOLULU Cryptocurrency is growing in popularity across the U.S. Over the last month, Crypto Currency and Dogecoin have been among the top searches in Hawaii.

    Iris Ikeda, Commissioner of Financial Institutions with the Hawaii Department of Commerce and Consumer Affairs, describes cryptocurrency as a computerized token, or digital money, which can be used in different ways.

    Get Hawaiis latest news sent to your inbox, to News 2 You, a daily newsletter.

    Because the evaluation is so high, you know, people are using it for investment purposes, Ikeda said. On the mainland, people are buying houses or cars boats

    While Ikeda said local businesses arent taking cryptocurrencies as payment yet, people are able to buy cryptocurrencies through the State of Hawaiis Digital Currency Innovation Lab.

    Currently, the state is allowing cryptocurrency trading with 11 companies under a pilot program.

    Youll have to sign up with the company. Each company has a different sign-up process, said Ikeda. Once you sign up, then you fund it with some U.S. dollars, and then with that, each platform has a different way of allowing you to buy cryptocurrency.

    She said the approved companies had to be reviewed to ensure they have cybersecurity protocols, information protection and security in place.

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    How To Buy Xrp In Hawaii

    Here are the simplest ways Hawaiian users can buy XRP:

    Through Exchanges:

    • Crypto.com: Is an exchange site that supports Hawaii, and allows XRP and many other coins on its exchange which you can view here. Users can buy XRP through the Crypto.com App, available for both IOS and Android.
    • CEX.io: Sells XRP for both USD and EUR, and since is part of Hawaiis cryptocurrency program, is another exchange from which Hawaiian users can directly buy XRP.

    Through P2P:

    • Localbitcoins.com: For a more P2P option, here, users can sell their Bitcoins for XRP or for a variety of other cryptocurrencies.

    Cryptocom Vs Coinbase: Security

    Coinbase and Crypto.com are highly secure platforms offering industry-standard measures required for operation in the United States. Both exchanges provide two-factor authentication, Federal Deposit Insurance Corporation insurance on USD balances, and insurance against damage or theft. They also use a bug bounty platform to find weaknesses. Coinbase keeps 98% of currencies in cold storage, whereas Crypto.com says it stores 100% in air-gapped cold storage.

    Each platform features a digital wallet with excellent security features, including multi-factor authentication and address whitelisting. But whitelisting is mandatory on the Crypto.com wallet and optional on Coinbase. The Crypto.com wallet provides private keys that are encrypted locally on the users device, while Coinbase manages the users private keys.

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