Hawaii will prohibit cryptocurrency kiosks from accepting cash in exchange for digital assets beginning October 1 under a consumer protection measure signed into law by Governor Josh Green. The restriction, enacted as Act 224 from House Bill 1642 on July 9, aims to address rising fraud linked to these machines, particularly schemes that target older adults.

What the Law Prohibits and Allows

The statute amends the state’s consumer protection rules to make it an unlawful practice for any operator to own, operate, or manage a digital financial asset transaction kiosk in Hawaii that accepts United States currency from a customer in exchange for a digital financial asset. Each prohibited transaction counts as a separate offense.

The law does not shut down the machines entirely. Operators may continue running kiosks that accept one digital asset in exchange for another or that accept a digital asset in exchange for U.S. currency. Residents can still sell cryptocurrency for cash at eligible machines and perform asset-to-asset swaps. Purchases of digital assets such as Bitcoin or Ethereum using cash at these kiosks will no longer be permitted.

Scam Data Driving the Measure

Lawmakers cited investigations by the attorneys general of Washington, D.C., and Iowa that found more than 93 percent of transactions at the kiosks they examined were connected to scams. A legislative committee report described the machines as increasingly used in fraud schemes that target older adults, in which victims are persuaded to transfer cryptocurrency to wallet addresses controlled by scammers.

According to the FBI’s Internet Crime Complaint Center, Hawaii recorded 92 complaints involving crypto kiosks in 2025, with adjusted losses totaling $3.85 million—nearly four times the prior year’s figure. Overall crypto-related complaints from Hawaii residents reached about 826, with total estimated losses of $80 million during the same period.

Staff working near the kiosks have reported that most users are kupuna, or elders, who often appear frightened or panicked during transactions. Hawaii banking commissioner Dwight Young has stated that the machines attract criminals because transactions are difficult to trace and typically begin with unsolicited calls, texts, or emails that claim a bank account has been compromised or that a government notice has been missed.

Local Operations and Broader Context

Data from CoinATMRadar indicates that approximately 57 crypto ATMs operate across four of Hawaii’s islands. Operators of these machines will need to adjust their services to comply with the cash-deposit prohibition by the October deadline.

Other states are examining similar steps. Texas lawmakers have discussed a possible ban after kiosk-related scams cost residents $57 million. Delaware has advanced its own bill addressing comparable schemes. Several states have already imposed full bans, transaction limits, refund requirements, or other safeguards on crypto kiosks. Hawaii’s measure is notable for specifically targeting cash-for-crypto purchases while leaving sales and swaps intact.

Consumer advocates have supported the restriction as a way to reduce risks for vulnerable populations by eliminating the primary transaction type exploited in many fraud cases. The law takes effect on October 1, after which violating operators face enforcement under the state’s consumer protection framework.