HONOLULU -- The controversial shark fin ban takes effect Thursday.

It makes Hawaii the first in the world to prohibit the possession of shark fins and the sale of shark fin soup.

State lawmakers and activists from around the world celebrated the new law Wednesday night. The law makes it illegal to sell, possess and distribute shark fins. “This is fantastic news for the sharks. This is a world first. Hawaii is the first place on the planet to ban sales of shark fin soup. We hope it’s the beginning of the end of the shark fin trade,” said Peter Knight, Executive Director of WildAid.

Anyone caught breaking the shark fin law will be subject to fines of $10,000 to $50,000 and the possible forfeiture of vessels.

But supporters of the ban said in the end, laws alone will not protect the sharks. “If people will pay money to get these animals, they will continue to be poached. And so it’s vital that the demand be reduced. And this bill helps to reduce the demand for shark fin soup,” Knights said.

There is a one year grace period for restaurants and vendors to sell off their remaining inventory of shark fins.

Mandalay Chinese Restaurant in Downtown, Honolulu has not sold shark fin soup since mid-May, even before lawmakers passed the shark fin ban. “I didn’t really realize how they get the shark fin,” said Mandalay owner Linda Chan.

Chan said supporters of the bill educated her and other restaurant owners on the common practice of removing the sharks’ fins while they’re still alive and throwing them back into the water, where they die from suffocation, blood loss or they’re killed by other predators.

State Sen. Clayton Hee (D- Kahuku-Kaneohe) said he’s received calls from lawmakers around the world who are interested in making Hawaii’s shark fin ban their own. “Hawaii will no longer be a way station for longliners and others who hunt sharks and bring them to Hawaii as a stopping off point on their way to China,” Hee said.

The U.S. Congress is currently considering the Shark Conservation Act of 2009. Activists said it would strengthen and complement Hawaii’s shark fin ban.