Hawaii bans crypto ATMs and kiosks starting Oct. 1

Hawaii’s total ban on cryptocurrency ATMs and kiosks takes effect Oct. 1 after Governor Josh Green signed House Bill 1642. The law makes it illegal to own, operate or manage any kiosk that accepts U.S. currency in exchange for digital financial assets.

The legislature approved the measure in May and the governor signed it in July. The statute applies to devices that accept physical U.S. currency from customers and convert it into digital assets.

Lawmakers cited consumer losses and fraud reports when advancing the bill. Federal law enforcement data show Americans reported more than $11 billion in losses tied to digital asset scams in 2025. The federal center recorded 826 complaints from Hawaii residents that year and about $80 million in reported losses in the state linked to digital assets, including incidents involving ATMs and kiosks.

There were 57 crypto ATMs and kiosks operating across four of Hawaii’s main islands as of the most recent available data, meaning the ban will affect businesses and consumers on those islands. Operators must stop offering cash-to-crypto transactions once the ban takes effect.

Several other states have taken similar actions this year. Minnesota, Tennessee and Indiana enacted total bans and began enforcing them in August, July and March, respectively. Delaware and New Jersey considered bans that had not been signed into law as of August, while South Dakota and Wyoming adopted laws that impose strict rules rather than outright prohibitions.

The statute targets kiosk transactions that use physical currency to buy digital assets, a transaction type cited in many consumer complaints and law enforcement reports. State officials say the measure is intended to address the rapid transfers to digital assets that have been linked to reported scams.