Hawaii to Implement Complete Cryptocurrency ATM Prohibition Starting October 1
The Aloha State is poised to become the fourth state in America to implement a comprehensive prohibition on cryptocurrency ATMs and kiosks, joining Minnesota, Tennessee, and Indiana in combating digital asset scams.
The US state of Hawaii is set to implement what will be one of the nation's most comprehensive bans on digital currency kiosks and automated teller machines after the state's chief executive approved the measure.
After Hawaii's legislative body successfully passed House Bill 1642 during their May session, the state's Governor Josh Green affixed his signature to the measure in July, positioning the Pacific state to enforce a comprehensive ban on "the ownership, operation, or management of a digital financial asset transaction kiosk that accepts United States currency from a customer in exchange for a digital financial asset."
According to the legislation, data obtained from the Federal Bureau of Investigation's Internet Crime Complaint Center was referenced, with the agency reporting in April that American citizens suffered losses exceeding $11 billion from fraudulent schemes involving digital assets throughout 2025. The federal law enforcement agency further noted that it had received 826 fraud complaints associated with cryptocurrency from individuals residing in Hawaii during 2025, with the island state experiencing approximately $80 million in financial losses stemming from digital assets, which included transactions through ATMs and kiosks.
The new Hawaii statute mirrors comparable legislative measures implemented in Minnesota, Tennessee and Indiana, with these states initiating enforcement of comprehensive prohibitions on digital asset kiosks during August, July and March, in that order. Additional state legislatures throughout the United States have put forward prohibition measures that remain unsigned as of August, with Delaware and New Jersey among them, whereas South Dakota and Wyoming have enacted statutes establishing stringent regulatory frameworks governing crypto ATM operations.
According to information compiled by CoinATMRadar, data retrieved as of Wednesday indicated that 57 crypto ATMs and kiosks were currently in operation throughout four of Hawaii's primary islands.