Hawaii Bans Cash-to-Crypto Transactions at Kiosks Starting October 1

Hawaii has become the latest state to crack down on cryptocurrency kiosks after Governor Josh Green signed House Bill 1642 into law as Act 224. The measure prohibits operators from owning, managing, or running a kiosk that accepts U.S. currency in return for a digital financial asset. Each prohibited transaction will be treated as a separate offense under Chapter 481B of the Hawaii Revised Statutes.

The law is narrower than blanket prohibitions adopted by some other states, allowing operators to still run machines that support crypto-to-cash withdrawals or exchanges between digital assets, provided they do not accept dollars from customers purchasing crypto after October 1. Hawaii residents will also retain the ability to buy, sell, and hold digital assets through online platforms.

The legislation was driven by data on fraudulent activity targeting older Americans. The FBI's Internet Crime Complaint Center recorded 92 complaints involving cryptocurrency kiosks from Hawaii residents in 2025, producing approximately $3.85 million in adjusted losses.