How to Buy Bitcoin or Other Crypto in Hawaii

Nowadays, cryptocurrencies are becoming more applicable and convenient for everyday life. Some of the great companies such as Microsoft have started accepting crypto as a payment method for some purchases.

As opposed to attempts of Bitcoin and other cryptocurrencies to grant users more independence from centralized institutions, governments have been struggling with how to regulate digital assets. This led to the creation of infamous laws that discouraged crypto exchanges from working under particular regulations.

Changes in the Hawaii Bitcoin law in 2016, as well as the exclusion of specific crypto exchanges from the market, brought confusion among crypto holders. It doesn’t come as a surprise why prospective buyers are at a loss regarding the legitimacy and the process of buying Bitcoins in Hawaii.

Is Bitcoin legal in Hawaii?

You shouldn’t worry about breaking the law or bypassing the regulations when purchasing crypto in the Aloha State, since it is perfectly legal. However, the procedure might be a bit more complicated compared to other countries.

To get a better insight into the tussle of purchasing crypto and Bitcoin, let’s go through the short history first.

Up until September 2016, crypto traders could buy and sell bitcoin and other tokens normally similar to the majority of other states. In September that year, the Hawaiian legislature enacted a law that forced crypto exchanges to keep reserves for collateral.

According to this rule, if a bitcoiner from Hawaii owned BTC in the amount of $10,000, the crypto exchange had to keep $10,000 in cash for that customer. As a result, exchanges that complied with this law would lose a huge amount of money.

Despite exchanges’ attempts to negotiate a better deal with legislators to enact a more favorable law, all the new bills were halted.

August 2020 was a beam of hope as the Hawaii Division of Financial Institutions launched a pilot program named Digital Currency Innovation Lab (DCIL) by which 12 crypto exchanges were granted a special license-free status. CEX.IO Bitcoin exchange platform was one of them.

According to this program, crypto exchanges were allowed to do business in the State of Hawaii without its rigid money-transmitter license for a period of two years. It is supposed to end on June 30, 2022.

Where Can I Buy Bitcoin in Hawaii?

A resident of Hawaii might experience a greater struggle purchasing bitcoin compared to someone else.

To buy or sell Bitcoin, you should find a regulated and trustworthy exchange,entitled to do business in Hawaii. CEX.IO is amongst. To get started create an account, validation waiting period, and you’re all set.

CEX.IO allows you to buy BTC using various payment methods online wallets, bank transfers, or debit cards. If it’s more convenient for you, you have an option to buy Bitcoin with credit card as well. Alternatively, you can choose to pair BTC/USD (BTC to USD).

Check out and compare live cryptocurrency prices.

In case you want to bypass crypto exchanges, or you simply prefer to buy bitcoin locally, you may do so using ATMs. Some allow you to purchase crypto instantly using cash only, without having to provide any proof of identity. When it comes to the verification step, your phone number will do.

A Bitcoin ATM in Hawaii is more private than crypto exchanges, however, it doesn’t come without restrictions.ATMs are practically unusable if you want to buy a lot of tokens. In case you do, crypto exchanges are a better option. Once you get hold of your coins, don’t forget you need to store them securely.

How to buy Ethereum in Hawaii

The second most popular crypto, Ethereum (ETH), is also available for purchase in Hawaii. This process is similar to the Bitcoin purchase.

To buy Ethereum, visit the CEX.IO platform, select ETH, select the preferred deposit method and choose the amount you’d like to purchase. When your order is processed, remember to withdraw your ETH coins to your online wallet.

FAQ

Q.

Where can I find a Bitcoin ATM in Hawaii?

A.

There are five BTC ATMs in Hawaii. One is located on the island of Kauaʻi at the Greentea, HawaiiI in Kapaa City, three could be found in Honolulu, and one at Vape Kings in Kapolei.

The easiest way to find a Bitcoin ATM is either to Google the ATM nearest to you or to use a Bitcoin ATM finder tool.

Q.

How do I sell BTC in Hawaii?

A.

The selling process is quite similar to the buying process. Create an account on the CEX.IO platform, validate it, and choose the number of tokens you want to sell.

Q.

How popular is crypto in Hawaii?

A.

Given the fact that Hawaii has strict laws regarding crypto, it’s not surprising that residents’ interest in digital assets is not as prominent as in other countries or states. Compared to the same period in 2021, we could say that there is a noticeable decline.

Still, a growing number of Hawaiian businesses are accepting bitcoin as a payment method.