Hawaii will prohibit cryptocurrency kiosks from accepting U.S. currency in exchange for digital assets beginning October 1, creating one of the strictest state-level measures against crypto ATM fraud in the country. The restriction comes as regulators respond to rising losses tied to scams involving cryptocurrency kiosks.
Governor Josh Green signed Act 224 on July 9. The law makes it unlawful for operators to own, operate, or manage a digital financial asset transaction kiosk that accepts U.S. currency from customers in exchange for digital assets.
The measure does not amount to a complete ban on every crypto ATM function. Operators can still facilitate transactions in which customers exchange one digital asset for another or convert digital assets into U.S. currency.
Fraud Concerns Drive Crackdown
Hawaii’s legislation follows a sharp increase in crypto kiosk-related fraud. Authorities recorded 92 complaints involving such machines in 2025, with adjusted losses reaching about $3.85 million.
Crypto kiosks have become a growing target for scams involving government impersonation, investment schemes, technical-support fraud and other forms of financial deception. Victims are often pressured to convert cash into cryptocurrency and transfer it to wallets controlled by criminals.
The FBI has reported hundreds of millions of dollars in cryptocurrency kiosk-related losses nationwide, adding pressure on states to tighten consumer protections.
Three States Already Have Full Bans
Hawaii’s approach differs from the outright bans adopted by Indiana, Tennessee and Minnesota. Those states have prohibited cryptocurrency kiosks statewide, while Hawaii is specifically targeting cash-to-crypto purchases.
The distinction could allow Hawaii’s kiosk industry to continue offering limited services after October 1. However, operators will lose access to the cash-to-crypto transaction model that scammers frequently exploit.
The move highlights a broader regulatory shift across the United States as lawmakers balance access to digital assets with growing concerns about consumer fraud. For Hawaii residents, cryptocurrency remains legal, but buying digital assets with cash through a crypto kiosk will no longer be permitted once the new rule takes effect.
