Hawaii State Law Targets Cryptocurrency Kiosk Scams

A new state law in Hawaii aims to curb cryptocurrency kiosk scams by banning machines that accept cash deposits in exchange for digital assets, but some consumer advocates warn that scammers may adapt their tactics.

Hawaii's Office of Consumer Protection estimates that consumers lost $3.85 million through crypto ATM fraud in 2025, nearly four times the amount lost in 2024, according to FBI reports.

The law, which takes effect on October 1, prohibits kiosks from accepting U.S. currency in exchange for digital financial assets but allows those that exchange one digital asset for another or dispense cash in exchange for a digital asset.