Hawaii will restrict a core feature of crypto ATMs starting October 1: users will no longer be able to purchase digital assets by depositing U.S. cash. Under Act 224, signed into law by Governor Josh Green on July 9, such transactions will be classified as violations and brought under the state’s consumer protection regulations.
The law only prohibits buying cryptocurrency with cash.
The new regulation does not require the closure of all cryptocurrency ATMs. The law targets the business model of “accepting U.S. currency and providing digital financial assets to customers.” This means operators will no longer be able to offer cash-to-crypto services in Hawaii.
However, the machine can still retain two other functions: allowing users to sell digital assets and withdraw U.S. cash, and exchanging one digital asset for another. In other words, the restriction focuses on limiting cash inflows for purchasing crypto, rather than completely banning the device.
The state legislature has focused its attention on fraud.
The relevant state legislative committee stated in its report that such devices are increasingly being used in scams targeting elderly individuals. A common tactic involves tricking victims into transferring cryptocurrency assets to wallet addresses controlled by scammers.
The report also cites investigations by the attorneys general of Washington, D.C., and Iowa, finding that over 93% of the sampled device transactions were related to fraud. Based on this finding, lawmakers believe it is appropriate to directly prohibit purchasing cryptocurrency through such devices, given that consumers still have other channels to access digital assets.
Complaints and losses have increased significantly.
According to data from the FBI’s Internet Crime Complaint Center, Hawaii residents filed 92 complaints related to crypto ATMs in 2025, with adjusted losses of approximately $3.85 million—nearly four times the amount from the previous year.
- Hawaii recorded 826 cryptocurrency-related complaints throughout the year.
- Involved total losses of approximately $80 million
- Approximately 57 devices are operating across the four islands of the state.
Hawaii Banking Commissioner Dwight Young told local media that these machines are easily exploited by criminals due to their high level of anonymity and difficulty in tracking. Fraud typically begins with phone calls, text messages, or emails, luring victims into transferring money by claiming issues such as “account anomalies” or “missed jury summonses.”
Other states are also moving to impose restrictions.
According to the state Department of Consumer Affairs, staff at the device locations reported that many users were elderly individuals appearing anxious. Similar restrictions are not unique to Hawaii; Texas lawmakers are evaluating related bans, and Delaware has already advanced its own legislation.