From October 1, Hawaii will prohibit the operation of cryptocurrency kiosks that accept US dollars in exchange for digital assets, following a law signed by Governor Josh Green on July 9 as Act 224.
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AAPLDetails of the new law
The new regulation amends Hawaii’s consumer protection statute. It makes it unlawful for kiosk operators to accept US currency from customers in exchange for digital assets such as Bitcoin or Ethereum. Each transaction that violates this condition will be treated as a separate offense.
The statute, however, allows kiosks to facilitate other types of transactions. Operators can continue to run machines where customers exchange one digital asset for another or sell cryptocurrency for cash. This means that while residents can sell crypto for dollars at kiosks, they are no longer able to purchase crypto using cash.
Hawaii’s measure targets machines “increasingly being used in scams targeting older adults,” in which victims are persuaded to transfer cryptocurrency to wallet addresses controlled by scammers.
Lawmakers stated that this targeted restriction directly addresses the main vulnerabilities often exploited by fraudsters, particularly in transactions involving physical currency.
Scams and consumer risk
A committee report accompanying the law cited investigations by the attorneys general of Washington, DC and Iowa. These officials found that more than 93% of the transactions at the kiosks they examined were linked to scams.
The FBI’s Internet Crime Complaint Center recorded 92 Hawaii-based complaints involving crypto kiosks in 2025. Adjusted losses from these incidents totaled $3.85 million, nearly quadrupling from the previous year. Across all crypto-related complaints from Hawaii residents, total losses were estimated at $80 million in the same period.
Staff working near the kiosks reported that most users are kupuna, or elders, who often seem frightened or panicked when interacting with the machines.
Hawaii banking commissioner Dwight Young commented that criminals are drawn to these machines because their transactions are difficult to trace and typically begin with phishing attempts via calls, texts, or emails purporting to be from banks or government authorities.
Mini dictionary: Kupuna are elders in Hawaiian communities, often treated with high respect and concern for their well-being.
State and national context
CoinATMRadar data shows that about 57 crypto ATMs operate on four Hawaiian islands. These machines, also called crypto kiosks or ATMs, serve as retail points for digital asset transactions with cash or direct wallet transfers.
Other US states are also reviewing policy responses. Texas lawmakers are discussing a possible ban after scams involving crypto kiosks in their state cost residents $57 million. Delaware has proposed a bill targeting similar schemes.
| State | Year | Kiosk Scam Losses | Status |
|---|---|---|---|
| Hawaii | 2025 | $3.85 million | Ban on cash-for-crypto kiosks |
| Texas | 2025 | $57 million | Ban under consideration |
Consumer advocates argue that the new Hawaiian measure seeks to reduce risks for vulnerable populations, especially older adults, by curbing the most common type of scam transaction: cash-for-crypto purchases.
