Digital Securities Exchange Commission (DSEC) of the Independent and Sovereign Nation of Hawai'i
Building a fair, transparent, efficient, and secure digital securities market for the Independent and Sovereign Nation of Hawai'i.
Building a fair, transparent, efficient, and secure digital securities market for the Independent and Sovereign Nation of Hawai'i.
The Central Bank of the Independent and Sovereign Nation of Hawai'i serves as a crucial regulatory partner to DSEC. Together, we collaborate closely to establish a robust financial ecosystem that ensures market stability, protects investors, and promotes sustainable economic growth across our digital financial landscape.
This partnership enables comprehensive oversight of financial markets while maintaining the independence necessary for each institution to fulfill its distinct regulatory mandate.
The Digital Securities Exchange Commission (DSEC) is the core agency responsible for regulating the digital securities market in the Independent and Sovereign Nation of Hawai'i. We establish and maintain a fair, transparent, efficient, and secure digital securities trading ecosystem.
DSEC's functions cover rule-making, market supervision, investor protection, and risk management. Our core mission is to ensure that all market participants strictly adhere to established laws and regulations.
DSEC holds supreme authority to formulate and amend business rules, policies, and procedures of digital securities exchanges. These rules serve as the foundation for market operations, covering listing standards, trading mechanisms, information disclosure, and settlement processes.
We build comprehensive compliance frameworks clarifying legal obligations for all market participants. This includes formulating standards for Anti-Money Laundering (AML), Combating the Financing of Terrorism (CFT), and Know Your Customer (KYC).
DSEC conducts comprehensive oversight of market activities to prevent manipulation, fraud, and insider trading. We have authority to investigate violations and take enforcement actions against offenders, including fines, trading suspension, or license revocation.
Protecting investors is a core responsibility. We ensure investors' rights through adequate information disclosure, risk warnings, complaint resolution mechanisms, and investor education programmes.
DSEC assesses and manages systemic risks in the digital securities market and formulates measures to maintain stability. This includes responding to market volatility, technical failures, and cybersecurity threats.
Our licensing framework is designed to ensure market integrity, investor protection, and financial stability. We offer two tiers of licences: Key Licences and Supplementary Specific Licences.
For institutions operating digital securities trading platforms, matching buy and sell orders, and providing clearing and settlement services.
For institutions buying and selling digital securities on behalf of clients, providing investment advisory services, or acting as underwriters.
For institutions providing secure storage and management services for digital securities holders.
For enterprises or entities issuing digital securities to raise capital.
For institutions assessing and providing rating services for the credit risk of digital securities and digital assets.
These supplementary licences address the increased complexity of DeFi/Web3, technical nuances of blockchain technology, investor protection in new models, and compliance infrastructure needs.
As digital finance evolves, more specialized services directly interacting with securities emerge, requiring dedicated regulatory frameworks.
The blockchain and smart contract layers introduce unique operational and security risks that necessitate specialized oversight.
New financial products (like digital asset derivatives) or organizational structures (like DAOs) require specific licensing to ensure investor protection and market stability.
The infrastructure for compliance (identity, smart contract security) becomes as critical as the trading itself and needs to be regulated.
If you are interested in operating in the Nation of Hawai'i digital securities market, or wish to learn more about DSEC and its licensing framework, please contact us.
Contact DSEC