Hawaii Bans Cash-to-Crypto ATM Purchases Starting October 2026

September 4, 2025 — Hawaii will prohibit cash purchases of cryptocurrency at kiosks starting Oct. 1, 2026, following FBI data showing $3.85 million in adjusted losses from 92 kiosk-related complaints among state residents in 2025. Governor Josh Green signed House Bill 1642 as Act 224 on July 9, targeting scam-related cash deposits.

Immediate Details & Direct Quotes

Act 224 prohibits operators from owning, managing, or running a kiosk that accepts U.S. currency in exchange for a digital financial asset. Each prohibited transaction will be treated as a separate offense under Hawaii’s consumer protection law, Chapter 481B of the Revised Statutes.

The final version of the bill, passed by lawmakers on May 6, focuses specifically on cash-to-crypto deposits rather than all kiosk services. Operators may continue offering crypto-to-cash withdrawals and crypto-to-crypto exchanges, provided they do not accept dollar bills from customers purchasing digital assets after the deadline.

CoinATMRadar data showed Hawaii had 57 cryptocurrency ATMs and kiosks across four main islands as of Aug. 12. Operators must disable the affected deposit function or remove machines that accept cash for crypto before October’s deadline arrives.

The legislation defines a digital financial asset transaction kiosk as an electronic device that accepts or dispenses U.S. currency through cash or payment cards in exchange for digital assets. Merchant rewards, in-game assets, and registered securities fall outside the definition.

Market Context & Reaction

Lawmakers focused on cash deposit functions because scammers frequently instruct victims to withdraw banknotes and route money through kiosks. According to the legislature’s findings, criminals pose as government officers, bank workers, technical support staff, or company representatives before providing step-by-step payment instructions.

The FBI’s Internet Crime Complaint Center reported that Hawaii complaints increased alongside national trends. Across the United States, IC3 received 13,460 kiosk-related complaints involving $388.98 million in adjusted losses during 2025. Complaint numbers rose 23% from 2024, while reported losses climbed 58%.

More than half of 2025 complaints came from individuals older than 50, with their reported losses exceeding $302 million. The age data supports Hawaii lawmakers’ finding that scammers often target older residents with urgent payment demands and impersonation schemes.

IC3 cautioned that state totals cover complaints where a kiosk appeared somewhere in the fraud. Cases may also involve bank transfers, payment apps, or other transaction methods, meaning the full loss listed cannot always be attributed solely to the kiosk.

Background & Historical Context

Hawaii’s approach differs from Indiana, Tennessee, and Minnesota, where state laws prohibit crypto kiosk operations entirely rather than only cash-to-crypto deposits. Minnesota’s statewide prohibition took effect Aug. 1 after authorities recorded 134 complaints and nearly $1 million in losses over three years. Tennessee began enforcing its ban on July 1.

Georgia took a different path by retaining machines under transaction caps, customer warnings, and refund duties for some fraud victims. Delaware and New Jersey lawmakers have advanced similar prohibition proposals, though neither had become law as of August.

At the federal level, crypto kiosk operators qualifying as money services businesses must register with the Financial Crimes Enforcement Network and comply with Bank Secrecy Act duties. These obligations include anti-money laundering programs, transaction records, suspicious activity reports, and sanctions controls—but federal registration does not prevent states from imposing stricter rules.

The legislature cited investigations by the attorneys general of Iowa and the District of Columbia, which found fraudulent activity accounted for a large share of transactions at some operators. Lawmakers said findings placed the rate as high as 90%, though the figure does not represent every kiosk or transaction nationwide.

What This Means

Hawaii residents will no longer be able to insert cash into kiosks to purchase Bitcoin or other cryptocurrencies once the law takes effect. The restriction does not prevent selling crypto for dollars at eligible machines or transacting through online platforms that remain legally available in the state.

The FBI advises against sending cryptocurrency to anyone known only through phone calls or online messages. Users should not scan QR codes supplied by strangers or provide funds to callers claiming government, bank, or company representation without independently verifying the request.

Operators with machines in Hawaii must assess whether their kiosks can support permitted services before the October deadline. Continued cash-to-crypto transactions after implementation will result in separate violations under state consumer protection law.

CryptoSimplified.net reminds readers that this information is for educational purposes and does not constitute financial advice. Always conduct your own research before engaging with cryptocurrency services.

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