- Hawaii will fully ban cryptocurrency ATMs and kiosks after Governor Josh Inexperienced signed new laws into regulation.
- Officers pointed to rising crypto scams, with Hawaii residents reporting roughly $80 million in digital asset-related losses throughout 2025.
- Hawaii joins a number of different U.S. states taking stronger motion in opposition to crypto kiosks as fraud issues proceed to rise.
Hawaii is making ready to remove cryptocurrency ATMs and kiosks throughout the state after Governor Josh Inexperienced signed laws introducing a whole prohibition on the machines.
Home Invoice 1642, accredited by Hawaii lawmakers in Might and signed into regulation in July, prohibits the possession, operation or administration of digital asset transaction kiosks that settle for U.S. forex in alternate for cryptocurrency.
The choice makes Hawaii one of many newest states to take aggressive motion in opposition to crypto ATMs, which regulators more and more view as a channel utilized by scammers to rapidly transfer victims’ cash into digital property.
Crypto Scams Drive Hawaii’s ATM Ban
The laws cited FBI information displaying Individuals misplaced greater than $11 billion to digital asset-related scams throughout 2025.
Hawaii residents submitted 826 crypto-related complaints throughout the 12 months, with reported digital asset losses reaching roughly $80 million. These figures embody losses linked to cryptocurrency ATMs and kiosks.
Crypto ATMs have drawn specific scrutiny as a result of transactions may be tough to reverse as soon as victims ship funds. Scammers steadily strain targets into depositing money into kiosks and transferring cryptocurrency to wallets managed by criminals.
Extra States Goal Crypto Kiosks
Hawaii isn’t alone in taking harder motion. Minnesota, Tennessee and Indiana have additionally moved to implement whole bans on digital asset kiosks, whereas different states are contemplating comparable restrictions.
Some jurisdictions have taken a much less aggressive strategy by introducing transaction limits, compliance necessities and different safeguards relatively than outright prohibitions.
As of Wednesday, Hawaii had 57 cryptocurrency ATMs and kiosks working throughout 4 of its predominant islands. These machines will now face removing because the state’s prohibition takes impact.
The transfer highlights a rising regulatory divide round crypto ATMs. Whereas some states try to manage the machines extra tightly, Hawaii has determined the consumer-protection dangers are vital sufficient to take away them completely.
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