As of October 1, Hawaii has enacted a ban on cash-to-crypto kiosk transactions due to 92 complaints and reported adjusted losses of $3.85 million submitted to the FBI by residents in 2025.
Summary
- Starting Oct. 1, 2026, cash purchases of cryptocurrency at kiosks in Hawaii will be banned.
- The FBI recorded 92 complaints and $3.85 million in adjusted losses tied to Hawaii kiosks in 2025.
- As of August 12, Hawaii had 57 crypto ATMs spread across four islands.
- Operators can continue to offer crypto-to-cash and crypto-to-crypto transactions.
House Bill 1642, signed into law by Governor Josh Green on July 9 as Act 224, prohibits operators from managing kiosks that accept U.S. currency in exchange for digital assets.
This ban will come into force on October 1, with each violation treated as a separate offense under the state’s consumer protection laws. The bill was finalized by lawmakers on May 6 before being sent to Green.
While some sources imply a total ban on crypto ATMs, the legislation specifically targets cash deposits for digital assets, leaving other services that the machines offer untouched. Operators can maintain kiosks facilitating exchanges between cryptocurrencies or from digital currencies to U.S. dollars.
Consequently, residents of Hawaii will no longer be able to use cash to buy Bitcoin or other cryptocurrencies at kiosks, but they can still sell cryptocurrency for cash at designated machines. Furthermore, the law does not limit the buying, selling, or holding of digital assets via online platforms that remain operational within the state.
Hawaii crypto ATM law targets cash transactions
Act 224 defines a digital financial asset transaction kiosk as an electronic device that accepts or dispenses U.S. currency, whether in cash or through a payment card, in exchange for a digital asset. This definition excludes specific merchant rewards, assets strictly for use in online games, and securities that are registered or exempt from registration according to federal or Hawaii securities laws.
Lawmakers focused on the cash deposit feature due to the numerous scams where victims are misled into withdrawing cash and depositing it via kiosks. Legislative findings indicate that fraudsters typically impersonate government officials, bank employees, technical support staff, or company representatives to guide victims in making payments.
At a kiosk, the scammer may stay on the line, provide a wallet address or QR code, and assist the victim in circumventing any warnings shown by the operator, as indicated in the findings. Once the transaction is completed, the criminals can transfer the digital assets to various wallets or offshore platforms, making it difficult for victims to recover their lost funds.
The legislature highlighted investigations by the attorneys general of Iowa and the District of Columbia, which uncovered that a substantial portion of transactions at certain operators were fraudulent. Lawmakers speculated that this rate could be as high as 90%, although this figure doesn’t reflect every kiosk or transaction across the country.
Data from CoinATMRadar shows that as of August 12, Hawaii had 57 cryptocurrency ATMs and kiosks across its four main islands. Operators are required to either deactivate the affected deposit functionality or cease accepting cash for crypto before the October deadline.
FBI data underscores kiosk-related losses in Hawaii
The FBI’s Internet Crime Complaint Center reported in May that Hawaii residents lodged 92 complaints about cryptocurrency kiosks in 2025, resulting in approximately $3.85 million in adjusted losses.
On a national scale, IC3 received 13,460 complaints related to kiosks during the same period, amounting to around $388.98 million in adjusted losses. Complaints surged by 23% compared to 2024, while reported losses rose by 58%.
More than half of the complaints in 2025 came from individuals over 50 years old, with their losses documented at over $302 million, emphasizing the susceptibility of older residents to scams that demand urgent payments and impersonation tactics.
IC3 warns that state totals consist of complaints where a cryptocurrency kiosk was involved, meaning a case could also involve bank transfers, payment apps, or other transaction methods. Thus, the total loss cited in a complaint might not be solely attributed to the kiosk.
Additionally, data from the FBI’s 2025 annual report indicated that Hawaii had 826 cryptocurrency-related complaints leading to about $80 million in losses. Unlike kiosk-specific data, the statewide figures encompass various types of crypto-related crimes and should not be solely equated with ATM fraud.
The bureau cautions U.S. consumers against sending cryptocurrency to individuals they only know through phone calls or online messages. It also advises against scanning QR codes provided by strangers or transferring funds to people claiming to represent a government agency, bank, or company without verifying the authenticity of the request.
State regulations on crypto ATMs show a mix of bans and limitations
Hawaii has opted for a more targeted transaction ban compared to states like Indiana, Tennessee, and Minnesota, which have enacted laws prohibiting crypto kiosk operations entirely rather than just cash-to-crypto deposits.
Minnesota’s statewide ban took effect on August 1 after authorities reported 134 complaints and nearly $1 million in losses over three years. Existing machines were ordered to stop processing transactions, and operators have until December 31 to dismantle kiosks accessible to the public.
Tennessee’s prohibition began on July 1, while Georgia took a different approach on the same date, allowing kiosks with certain transaction limits, customer warning requirements, and refund obligations for particular fraud victims, as detailed in prior state reports.
Indiana’s ban took effect in March. Meanwhile, legislators in Delaware and New Jersey have also proposed banning crypto ATMs; however, neither measure had passed into law as of August.
Other states permit these machines but require licensing, warning screens, receipts, holding periods, daily limits, or refunds in specific fraud cases. A review by crypto.news published on August 3 noted varied oversight regarding crypto kiosks across the U.S., ranging from complete bans to states lacking specific regulatory frameworks.
At the federal level, crypto kiosk operators qualifying as money services businesses must register with the Financial Crimes Enforcement Network and comply with the requirements of the Bank Secrecy Act. These obligations include establishing an anti-money laundering program, maintaining transaction records, filing suspicious activity reports, and implementing sanctions controls, though federal registration does not prevent states from imposing stricter operational regulations.
Enforcement begins with every prohibited transaction
Hawaii has incorporated the new provision into Chapter 481B of its Revised Statutes, which deals with unfair and deceptive business practices. The law classifies each cash-to-crypto transaction conducted in violation of the ban as a separate offense, rather than treating ongoing operations as a single violation.
The final bill removed the requirement for a complete shutdown when a machine can still facilitate allowable services. Operators may retain the ability to process crypto-to-cash withdrawals and exchanges between digital assets, provided they do not accept U.S. currency for crypto purchases after October 1.
