Hawaii crypto ATM cash deposits banned from Oct. 1

Hawaii has enacted an October 1 ban on cash-to-crypto kiosk transactions after the FBI recorded 92 associated complaints and $3.85 million in adjusted losses amongst state residents in 2025.

Hawaii’s enacted House Bill 1642, signed by Governor Josh Inexperienced on July 9 as Act 224, prohibits operators from proudly owning, managing, or operating a kiosk that accepts U.S. foreign money in return for a digital monetary asset.

The restriction will apply from Oct. 1, with every prohibited transaction handled as a separate offense beneath the state’s client safety legislation. Hawaii lawmakers handed the ultimate model on Could 6 earlier than sending it to Inexperienced.

Though some experiences have described the measure as a complete crypto ATM ban, the enacted textual content covers deposits used to purchase digital property slightly than each service supplied by the machines. Operators might proceed operating kiosks that settle for crypto in trade for one more digital asset or U.S. foreign money.

Consequently, Hawaii residents will not be capable of insert cash right into a kiosk to buy Bitcoin or one other cryptocurrency, however the legislation doesn’t stop them from promoting crypto for {dollars} at an eligible machine. It additionally doesn’t prohibit shopping for, promoting, or holding digital property by on-line platforms that stay legally obtainable within the state.

Hawaii crypto ATM legislation targets cash deposits

Underneath Act 224, a digital monetary asset transaction kiosk means an digital gadget that may settle for or dispense U.S. foreign money by cash or a cost card in trade for a digital asset. The definition excludes sure service provider rewards, property used solely inside on-line video games, and securities registered or exempt from registration beneath federal or Hawaii securities legislation.

Hawaii lawmakers centered on the cash deposit operate as a result of scammers generally direct victims to withdraw banknotes and ship the cash by a kiosk. In keeping with the legislature’s findings, criminals usually pose as authorities officers, financial institution employees, technical help workers, or firm representatives earlier than giving victims step-by-step cost directions.

As soon as a sufferer reaches a machine, the scammer might stay on the cellphone, provide a pockets tackle or QR code, and clarify methods to get previous warnings displayed by the operator, the findings stated. After the transaction clears, criminals can route the digital property by different wallets or offshore platforms, limiting the sufferer’s likelihood of recovering the cash.

The legislature cited investigations by the attorneys normal of Iowa and the District of Columbia, which discovered that fraudulent exercise accounted for a big share of transactions at some operators. Lawmakers stated findings from these investigations positioned the speed as excessive as 90%, though the determine doesn’t signify each kiosk or transaction in the US.

CoinATMRadar knowledge confirmed that Hawaii had 57 cryptocurrency ATMs and kiosks working throughout 4 major islands as of Aug. 12. Operators might want to disable the affected deposit operate or cease providing machines that settle for {dollars} for crypto earlier than the October deadline.

FBI knowledge put Hawaii kiosk losses at $3.85 million

The FBI’s Web Crime Criticism Heart reported in May that Hawaii residents filed 92 complaints involving cryptocurrency kiosks in 2025, producing about $3.85 million in adjusted losses.

Nationally, IC3 obtained 13,460 kiosk-related complaints involving $388.98 million in adjusted losses throughout the identical yr. Criticism numbers elevated by 23% from 2024, whereas reported losses rose by 58%.

Greater than half of the 2025 complaints got here from individuals older than 50, with their reported losses exceeding $302 million, in accordance with the bureau. The age knowledge help Hawaii lawmakers’ discovering that scammers usually goal older residents with pressing cost calls for and impersonation schemes.

IC3 cautioned that its state totals cowl complaints wherein a cryptocurrency kiosk appeared someplace within the fraud. A case may additionally contain financial institution transfers, cost apps, or different transaction strategies, that means the complete loss listed in a criticism can’t all the time be attributed solely to the kiosk.

Separate figures from the FBI’s 2025 annual report confirmed that People submitted 826 cryptocurrency-related complaints from Hawaii, with losses of roughly $80 million. Not like the kiosk desk, the annual state determine covers a number of types of crypto-enabled crime and shouldn’t be handled as a measure of ATM fraud alone.

For U.S. shoppers, the bureau advises in opposition to sending cryptocurrency to anybody identified solely by cellphone calls or on-line messages. It additionally tells customers to not scan a QR code equipped by a stranger or present funds to callers claiming to signify a authorities company, financial institution, or firm with out independently verifying the request.

State crypto ATM guidelines have break up between bans and limits

Hawaii has chosen a narrower transaction ban than Indiana, Tennessee, and Minnesota, the place state legal guidelines prohibit crypto kiosk operations slightly than solely cash-to-crypto deposits.

Minnesota’s statewide prohibition took impact on Aug. 1 after state authorities recorded 134 complaints and almost $1 million in losses over three years, as crypto.information reported earlier this month. Current machines needed to cease processing transactions, whereas operators have till Dec. 31 to take away kiosks accessible to the general public.

Tennessee started implementing its personal prohibition on July 1. Georgia took a special route on the identical date by retaining the machines beneath transaction caps, buyer warnings, and refund duties for some fraud victims, in accordance with (*1*).

Indiana’s ban had already entered into drive in March. Delaware and New Jersey lawmakers have additionally superior proposals to ban crypto ATMs, although neither proposal had turn out to be legislation as of August.

Different states allow the machines however require licensing, warning screens, receipts, holding intervals, each day limits or refunds in outlined fraud circumstances. A crypto.information state rule review revealed Aug. 3 discovered that U.S. kiosk oversight ranged from full prohibitions to states with out a devoted regulatory system.

On the federal degree, crypto kiosk operators that qualify as cash companies companies should register with the Monetary Crimes Enforcement Community and adjust to Financial institution Secrecy Act duties. In keeping with FinCEN, these obligations embody an anti-money laundering program, transaction data, suspicious exercise experiences, and sanctions controls, however federal registration doesn’t stop states from imposing stricter working guidelines.

Enforcement begins with every prohibited transaction

Hawaii positioned the brand new provision in Chapter 481B of its Revised Statutes, which governs unfair and misleading enterprise practices. The legislation classifies each cash-to-crypto transaction performed in breach of the restriction as its personal offense, slightly than treating continued operation as a single violation.

The ultimate model eliminated the necessity for an entire shutdown when a machine can help permitted companies. Operators might retain crypto-to-cash withdrawals and exchanges between digital property, offered they don’t settle for U.S. foreign money from prospects buying crypto after Oct. 1.