Hawaii to Ban Crypto ATMs From October 1

Hawaii will be the latest US state to ban crypto ATMs and other digital asset kiosks from October 1, under a new law signed by the governor. The legislation aims to prevent scams.

House Bill 1642, which was signed into law in July, prohibits “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.” The measure is set to take effect on October 1, 2026.

The legislation cites the growing use of crypto kiosks in scams as the reason for the ban. FBI data included in the bill stated that more than 10,900 complaints involving crypto kiosks were reported in 2024, with losses of about $246.7 million. In the first six months of 2025, those losses reached around $240 million.

Hawaii's legislature had also considered tighter rules for crypto kiosks, including transaction limits, blockchain analytics and tracing requirements, refunds for certain fraudulent transactions, and additional disclosures. The enacted ban comes from a broader initiative to prohibit the relevant kiosk activity altogether.

Some of the other US states have also taken action against crypto ATMs. Minnesota, Tennessee, and Indiana have introduced full bans, while some states have opted for tighter operating restrictions instead.