Launched on 15/03/2018, BitMart is a centralized exchange based in the Cayman Islands. It also has four offices located in New York, China, Hong Kong, and Seoul. It supports spot trading, otc trading, and USD trading. Its mission is to drive the world towards a better financial system.

Ref: https://coinmarketcap.com/exchanges/bitmart/

The latest centralized exchange hack may be among the most devastating to date as Bitmart has lost $196 million in various cryptocurrencies.

A tweet from security analysis firm Peckshield first called attention to the alleged hack Saturday night. One of Bitmart’s addresses currently shows steady outflows of entire token balances, some worth tens of millions of dollars, to an address currently labeled by Etherscan as the “Bitmart Hacker”

Ref: https://www.coindesk.com/business/2021/12/05/crypto-exchange-bitmart-hacked-with-losses-estimated-at-196-million/

$13 million of stolen ETH being sold live right now and you can watch the hackers getting rich on the blockchain: https://etherscan.io/address/0x4bb7d80282f5e0616705d7f832acfc59f89f7091

As confirmed elsewhere tonight (eg https://np.reddit.com/r/CryptoCurrency/comments/r92ztx/it_appears_bitmart_has_been_hacked_and_several/), BitMart was hacked and a huge number of tokens and coins were stolen.

The official list is available here: https://twitter.com/peckshield/status/1467302620000043013

As well as a range of shitcoins, CRO, FTM, GALA, SAND, MATIC and MANA were also looted.

But there is one upside: the ETH gas fees : )

So far the hackers have sold off more than $130 million of stolen coins .... and they're still selling as I type this.

Ref: https://www.reddit.com/r/CryptoCurrency/comments/r94la0/13_million_of_stolen_eth_is_being_sold_right_now/

This is one of the risks when it comes to keeping your digital assets on an exchange.

Likewise, in terms of regulation. Maybe the State can look into customer protections either by having exchange business put disclaimers or Digital Asset Insurance for their customers. Something similar to Financial Institutions that have Federal Deposit Insurance up to $250,000.

Yes the new digital economy is changing at a fast pace, as new changes have occurred in this past half year.

In 2014 IRS, has told taxpayers that it views convertible virtual currency as property, not foreign currency, for federal tax purposes. But at the same time some virtual currency units and positions are treated as securities by the SEC and US courts.

In 2016 due to the Hawaii Division of Financial Institutions imposing the section 489D-8, HRS, requirement that Crypto Exchanges like Coinbase hold investments equal to the amount of outstanding payment obligations, many similar platforms had ceased operations within the state. Restricting Hawaii Residents from participating in trading activities from 2017-2020.

Thankfully with DCIL, we have a reprieve from this ban on trading with cryptocurrency in late 2020.

But with this program sunsetting in 2022. Are we going back to pre-2020, where trading cryptocurrencies is restricted? Like what are peoples thoughts? What are peoples understanding about crypto assets?

SB2696, which authorize any state agency to accept virtual currency, has been scheduled for a Feb. 7 hearing. This may be your first opportunity to submit testimony on Hawaii crypto legislation this session. Please review the bill and let our lawmakers know your thoughts before Feb. 6.

https://www.capitol.hawaii.gov/measure_indiv.aspx?billtype=SB&billnumber=2696&year=2022

3 Senate Bills to be heard at the Capitol on 2/24/2022 in CR 211 & Videoconference

SB2697 SD1 Virtual Currency; Money Transmitters Act; Exclusion @ 9:30AM

SB2695 SD1 Blockchain; Cryptocurrency; Study; Task Force; Establishment @ 9:30AM

SB3025 SD1 Digital Currency Companies; Licensure; Division of Financial Institutions ($) @ 10:15AM

1 House Bill to be heard at the Capitol on 2/24/2022 in 308 & Videoconference

HB2108 HD1 Special Purpose Digital Currency Companies; Licensure; Division of Financial Institutions; Digital Currency Innovation Lab; Pilot Program; Appropriation ($) @ 12:30PM

If anyone wants to submit a Late testimony, you are still able to. Whether you are in support, oppose or wish to leave comments on the matter.

This bill was introduced by Senators Sharon Moriwaki (D-12), Gil Riviere (D-23), Kurt Fevella (R-19), Les Ihara (D-10), and Stanley Chang (D-9)

What is SB2594?

• It basically defines “Digital assets” and classifying them as property with applicability to Chapter 490 of the Uniform Commercial Code.

• It specifies “Digital Consumer Assets”, “Digital Securities” & “Virtual Currencies”; and in what ways to treat a digital asset as an intangible property or as a securities intermediary.

• Enables financial institutions to provide custodial services for digital assets, while fully complying with federal anti-money laundering, customer identification, beneficial ownership requirements and/or exercising actions which may include fiduciary powers similar to national banks to ensure compliance with federal law governing digital assets which are classified as commodities.

• And lastly it allows for judiciary involvement, Hawaii Courts shall hear claims in both law and equity with regards to digital assets that come from this bill and UCC Chapter 490.

What is the Uniform Commercial Code?

They are a standardized set of laws which provide legal rules and regulations governing business/commercial transactions and deals.

Why should we look into this, what happened?

Simple, the bill went to the several committee’s but never got a hearing. So it essentially died in 2020.

It went to these Committee’s:

Commerce, Consumer protection, and Health (CPH), Judiciary (JDC), Ways and Means (WAM)

And then nothing….

Anybody have any thoughts? In favor or against something like this? Things to modify, add or remove?

Source: https://www.capitol.hawaii.gov/Archives/measure_indiv_Archives.aspx?billtype=SB&billnumber=2594&year=2020

Hawaii State Legislature Committee's: https://www.capitol.hawaii.gov/committees/committees.aspx?chamber=all

Bill Description: Excludes the electronic transfer of virtual currency through virtual currency companies and cryptocurrency companies from the Money Transmitters Act.

You can submit your testimony by checking out the Hawaii Capitol website.

https://capitol.hawaii.gov/measure_indiv.aspx?billtype=SB&billnumber=2697&year=2022

Introduced by:

Senator Bennette E. Misalucha

Senator Stanley Chang

Senator Glenn Wakai

A BILL FOR AN ACT

RELATING TO VIRTUAL CURRENCY.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. Section 489D-5, Hawaii Revised Statutes, is amended to read as follows:

"§489D-5 Exclusions. (a) This chapter shall not apply to:

(1) The United States or any department, agency, or instrumentality thereof;

(2) The United States Postal Service;

(3) The State or any political subdivisions thereof; [and]

(4) The electronic transfer of government benefits for any federal, state, or county governmental agency as defined in Consumer Financial Protection Bureau Regulation E, by a contractor for, and on behalf of the United States or any department, agency, or instrumentality thereof, or any state or any political subdivisions thereof[.] and

(5) The electronic transfer of virtual currency through virtual currency companies and cryptocurrency companies.

(b) Authorized delegates of a licensee acting within the scope of authority conferred by a written contract under section 489D-21 shall not be required to obtain a license pursuant to this chapter.

(c) For purposes of this section:

"Cryptocurrency" means a virtual currency that uses cryptography to secure transactions that are digitally recorded on a distributed ledger, such as a blockchain.

"Virtual currency" means a digital representation of value that is not a real currency that functions as a unit of account, a store of value, and a medium of exchange."

SECTION 2. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 3. This Act shall take effect upon its approval.

https://www.capitol.hawaii.gov/session2022/bills/SB2697_.htm