Cryptocurrency exchange Coinbase has announced that it will cease offerings its services to bitcoin enthusiasts in Hawaii.

The decision, according to the company, was due to the requirements of a new policy imposed by the Hawaii Division of Financial Institutions (DFI).

In a blog post, Coinbase explained that it was notified by the DFI that digital currency businesses in the state will be required to be licensed under the state’s Money Transmission Act—which the company doesn’t object to. However, DFI said last September that digital currency businesses like Coinbase will have to maintain cash reserves or similar liquid assets like “permissible investments” in an amount equal to the aggregate face value of digital currency funds held on behalf of customers.

This means that for every one bitcoin that Coinbase holds for a customer in Hawaii, the exchange needs to have the equivalent cash value of that bitcoin—nearly around $1,200 at the moment—as redundant collateral.