Hawaii to ban cash deposits at crypto ATMs starting October

Hawaii Governor Josh Green signed Act 224, which bans cash deposits at cryptocurrency kiosks starting October 1, 2026, to protect consumers from scams. While users can still sell crypto for cash, they cannot deposit cash to buy digital assets. The ban comes as Hawaii residents lost $3.85 million to kiosk scams in 2025, with older adults frequently targeted. Other states like Texas and Delaware are also considering similar restrictions.

Hawaii cash deposit ban

• ▪Hawaii Governor Josh Green signed Act 224 on July 9, 2026, which bans the operation of crypto kiosks that accept U.S. currency in exchange for digital assets starting October 1, 2026.
• ▪Hawaii's Act 224, which takes effect on October 1, 2026, does not prohibit kiosk operators from accepting digital assets in exchange for other digital assets or for U.S. currency.
• ▪Under Hawaii's Act 224, signed on July 9, 2026, each prohibited transaction where a kiosk accepts U.S. currency for a digital asset counts as a separate offense.

Crypto kiosk scam targeting

• ▪Hawaii Banking Commissioner Dwight Young stated that crypto kiosks appeal to criminals because they are anonymous and difficult to trace.
• ▪Staff working near Hawaii crypto kiosks reported to the state's consumer affairs department that most users are panicked or frightened kupuna, or elders.
• ▪A Hawaii legislative committee report found that crypto kiosks are increasingly used in scams targeting older adults, who are convinced to transfer cryptocurrency to wallets controlled by scammers.

Scam prevalence rates

• ▪The FBI's Internet Crime Complaint Center logged 92 kiosk-related complaints from Hawaii residents in 2025, which was nearly four times the number of complaints recorded in 2024.
• ▪Investigations by the attorneys general of Washington, D.C. and Iowa found that more than 93% of transactions at the examined crypto kiosks were scams.

Financial losses from scams

• ▪Hawaii residents filed 826 total cryptocurrency complaints in 2025, representing approximately $80 million in losses, according to the FBI's Internet Crime Complaint Center.
• ▪Hawaii residents suffered $3.85 million in adjusted losses from crypto kiosk scams in 2025, according to the FBI's Internet Crime Complaint Center.

Multi-state regulatory response

• ▪Approximately 57 crypto ATMs operate across four islands in Hawaii as of August 2026, according to data from CoinATMRadar.
• ▪Texas lawmakers are considering a ban on crypto kiosks after scams cost residents $57 million, while Delaware has advanced a bill to ban predatory Bitcoin ATMs.

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