How am I protected as a consumer participating in the Digital Currency Innovation Lab?
DFI takes multiple steps to ensure the protection of consumers:
a) To ensure that a company is eligible to participate, DFI requires that the company submit an application to demonstrate that it has the necessary capital, personnel, financial and technical expertise to provide its services.
b) Upon admittance into the program, the company must provide DFI with the necessary data following DFI’s stipulated timeline. This data will allow DFI to monitor the activities ongoing in the Digital Currency Innovation Lab.
c) On its public-facing platform, the company must also provide written disclosures on the value fluctuations of digital currencies.
However, customers are encouraged to exercise discretion and caution in digital currency transactions as there will be associated risks. Neither HTDC nor DFI will be liable for any losses incurred with the consumer’s participation in the Digital Currency Innovation Lab.
Digital currency is a digital representation of value that functions as a medium of exchange, a unit of account, and/or a store of value. In some environments, it operates like “real” currency (i.e., the coin and paper money of the United States or of any other country that is designated as legal tender, circulates, and is customarily used and accepted as a medium of exchange in the country of issuance), but it does not have legal tender status in the U.S. Cryptocurrency is a type of digital currency that utilizes cryptography to secure transactions that are digitally recorded on a distributed ledger, such as a blockchain, DAG, or Tempo.
Digital currency that has an equivalent value in real currency, or that acts as a substitute for real currency, is referred to as “convertible” digital currency. Bitcoin, Ether, Roblox, and V-bucks are a few examples of a convertible digital currency. Digital currencies can be digitally traded between users and can be purchased for, or exchanged into, U.S. dollars, Euros, and other real or digital currencies.
I want to buy digital currency. Can I use any digital currency company?
The DCIL is a two-year program to evaluate whether the digital currency industry should be licensed or not. The Participating Companies are allowed to conduct digital currency transactions with their customers. See the link to the DCIL 2020 and 2021 participants and the Program description on DFI’s webpage
How can I purchase digital currencies?
You will need to check with the companies operating in the Digital Currency Innovation Lab for program requirements.
Is there a limit to the amount of digital currency I can transact per day?
Each company may have limits to the amount or number of transactions or other restrictions. Please review the company’s requirements before you engage in this activity.
Are all digital currencies accepted in this program?
The Digital Currency Innovation Lab will accept the various digital currencies issued by the participating companies
What happens at the end of the Program (June 30, 2022)? Will customers of the Participating Companies have to sell all their digital currency before or after the Program closes?
The DCIL is a two-year program with activities scheduled to terminate on June 30, 2022 (“activity end date”). Participating Companies will have until December 31, 2022, to disengage customers, return funds, close accounts and cease operating (“closure date”). Accordingly, yes customers will need to withdraw their funds in accordance with the Participating Company’s disengagement and closure schedule.
Can customers make more deposits and withdrawals with the Participating Company once the Program closes?
No, after the Program’s activity end date, customers may not make additional deposit transactions. Customers may only make withdrawals to close the account in accordance with the Participating Company’s disengagement and closure schedule.
After the Program is closed, can customers keep the digital currency that was purchased during the Program, then withdraw the digital currency at any later time?
No, accounts must be closed at the end of the Program in accordance with the Participating Company’s disengagement and closure schedule.
Will the Program be extended after 2022?
No extensions to the Program are scheduled. The Participating Companies will need to cease activities by the activity end date, and cease operating in Hawaii by the closure date.
Will the Participating Companies ever be allowed to operate permanently in Hawaii, so that Hawaii customers can continue to purchase digital currencies?
This depends on whether the State legislature passes law to enable reasonable licensing of this industry or exempt it from licensing.
What should I do if I would like to file a complaint against a digital currency issuer?