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Hawaii crypto ATM ban to take effect on Oct. 1
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- DeepHorus
Hawaii will prohibit cryptocurrency ATMs and kiosks starting October 1, becoming the fourth U.S. state to enact a complete ban. Governor Josh Green signed House Bill 1642 into law in July, following legislative approval in May. The measure outlaws the ownership, operation, or management of digital financial asset transaction kiosks that accept U.S. currency in exchange for digital assets.
Hawaii joins Minnesota, Tennessee, and Indiana, which enforced similar bans in August, July, and March respectively. The move responds to rising crypto-related fraud, particularly targeting older residents who often use physical kiosks. Lawmakers explicitly cited Federal Bureau of Investigation data in the bill to justify the prohibition.
According to the FBI's Internet Crime Complaint Center, Americans lost more than $11 billion to digital asset scams in 2025. The bureau recorded 826 complaints from Hawaii residents, with state losses totaling roughly $80 million. CoinATMRadar counted 57 crypto ATMs across four of Hawaii's main islands as of Wednesday.
The ban aims to eliminate a common avenue for scammers, who instruct victims to deposit cash into kiosks. Unlike online exchanges, kiosks often lack fraud safeguards and can be operated anonymously. Consumer protections become especially critical as reported losses continue to climb nationwide.
Other states have taken varied approaches to the issue. Delaware and New Jersey have proposed bans that remain unsigned as of August, while South Dakota and Wyoming have enacted stricter regulations rather than outright prohibitions. Industry advocates argue that bans remove legitimate access for unbanked residents, but consumer groups support the crackdown.
As the October 1 effective date approaches, kiosk operators in Hawaii must wind down operations or face enforcement. The law could set a precedent for other jurisdictions weighing similar legislation. With federal data showing persistent losses, more states may follow Hawaii's lead in the coming months.
