Hawaii Bans Cash Deposits at Crypto ATMs Amid Scam Concerns

The state of Hawaii has passed a law that prohibits crypto kiosks from accepting cash deposits starting October 1. The measure, known as Act 224, was signed by Governor Josh Green on July 9 and adds a new section to the state's consumer protection statute.

The law targets the practice of scammers convincing victims to transfer cryptocurrency to their wallets in exchange for cash at kiosks. According to a committee report, these machines are increasingly being used in scams targeting older adults.

A recent investigation by the attorneys general of Washington, DC and Iowa found that over 93% of transactions at the kiosks they examined were scam transactions. The FBI's Internet Crime Complaint Center logged 92 kiosk-related complaints from Hawaii residents in 2025 and $3.85 million in adjusted losses.

While the law does not ban crypto kiosks entirely, it prohibits operators from accepting cash deposits in exchange for digital assets. Customers can still use these machines to sell their cryptocurrency and receive cash or swap one digital asset for another.