Hawaii will prohibit cash deposits at cryptocurrency ATMs starting October 1st, following Governor Josh Green’s signing of Act 224 into law on July 9th. This new regulation aims to curb the use of crypto kiosks for illicit activities, driven by significant concerns over scams and financial losses.
The law specifically makes it unlawful for operators to accept U.S. currency from customers in exchange for digital assets at these kiosks. However, it permits ATMs to facilitate the exchange of digital assets for U.S. currency or the exchange of one digital asset for another. This distinction aligns with the legislative intent to address vulnerabilities exploited in fraudulent schemes.
Evidence cited in a committee report indicates the scale of the problem: investigations by the attorneys general of Washington, D.C., and Iowa found that over 93% of examined kiosk transactions were linked to scams. Further data from the FBI’s Internet Crime Complaint Center (IC3) highlights the impact on Hawaii residents. In 2025, the IC3 logged 92 kiosk-related complaints from Hawaii, resulting in adjusted losses of $3.85 million. The state also recorded 826 overall cryptocurrency complaints in 2025, valued at approximately $80 million.
Hawaii’s banking commissioner, Dwight Young, told Hawaii News Now that the anonymity and traceability challenges associated with crypto ATMs make them attractive to criminals. Scammers often initiate contact through unsolicited calls, texts, or emails, falsely claiming compromised bank accounts or missed jury duty, and then persuade victims to transfer cryptocurrency to controlled wallet addresses. Staff observing kiosk usage reported that many users, particularly elders, appeared distressed.
Approximately 57 crypto ATMs are currently operational across four of Hawaii’s islands, according to CoinATMRadar. The legislative action in Hawaii is part of a broader trend of state-level regulatory responses to cryptocurrency-related fraud. Lawmakers in Texas are considering a similar ban on crypto kiosks following scams that cost residents $57 million, and Delaware has advanced its own bill concerning these machines.
The committee concluded that banning cash purchases at kiosks was appropriate, given that consumers have alternative methods for acquiring digital assets. This measure seeks to protect consumers by removing a key avenue for fraudulent transactions while allowing other forms of cryptocurrency exchange to continue.
Why This Matters
The materials describe a narrow update: Hawaii has enacted a law, Act 224, signed by Governor Josh Green on July 9th, which will make it illegal to operate a cryptocurrency ATM that accepts cash deposits from customers starting October 1st. The distinction in the law reflects what lawmakers were targeting, which was the use of kiosks in scams.
Broader Context
Source materials place the factual news in this context: Hawaii will make it unlawful to run a crypto kiosk that takes cash from customers starting October 1, under a measure Governor Josh Green signed on July 9 as Act 224.
