Hawaii to ban cash purchases at crypto ATMs starting Oct. 1 after surge in kiosk scams Hawaii will make it illegal to operate crypto kiosks that accept cash for digital assets beginning Oct. 1, under Act 224, signed by Governor Josh Green on July 9. The new measure amends the state’s consumer protection law to prohibit any operator from owning, running or managing a kiosk that “accepts United States currency from a customer in exchange for a digital financial asset.” The statute treats each prohibited transaction as a separate offense. The law does not shut the machines off entirely. Operators may continue to run kiosks that accept one digital asset for another or that let customers sell crypto in exchange for U.S. dollars. In short: you’ll still be able to cash out crypto at a kiosk, but you won’t be able to insert banknotes to buy crypto. Why the ban? Lawmakers and regulators say the move targets a growing wave of kiosk-enabled scams, particularly those preying on older adults. A legislative committee report cited cases in which victims were convinced to transfer cryptocurrency to wallet addresses controlled by scammers. Investigations by the attorneys general of Washington, D.C., and Iowa — referenced in the report — found that more than 93% of transactions at the kiosks they examined were linked to scams. Local data underscores the concern. The FBI’s Internet Crime Complaint Center recorded 92 kiosk-related complaints from Hawaii residents in 2025, reporting about $3.85 million in adjusted losses — nearly four times the prior year. The state also logged 826 crypto-related complaints overall for the period, totaling roughly $80 million in reported losses. Hawaii Banking Commissioner Dwight Young told Hawaii News Now that kiosks’ anonymity and low traceability make them attractive for criminals; scams often begin with unsolicited calls, texts or emails claiming a bank account has been compromised or that the target missed a jury summons. Staff working near kiosks reported most users were kupuna (elders) who appeared frightened or panicked. There are about 57 crypto ATMs operating across four of Hawaii’s islands, according to CoinATMRadar. The state’s action comes amid broader U.S. scrutiny of kiosk activity: Texas lawmakers have discussed a ban after kiosk scams cost residents an estimated $57 million, and Delaware has advanced a similar bill. What this means for consumers and operators - Consumers: Residents who want to buy crypto with cash at kiosks will need to use other on-ramps (bank transfers, exchanges, brokerages). Selling crypto for cash at kiosks remains permitted. - Operators: Kiosk owners will need to stop accepting cash for crypto purchases in Hawaii by Oct. 1 or risk enforcement on a per-transaction basis. Hawaii’s law aims to curb a localized vector for fraud while preserving some legitimate uses of kiosks. As other states weigh comparable restrictions, the regulation could signal a wider shift in how authorities balance consumer protection and access to retail crypto services. Read more AI-generated news on: undefined/news