Hawaii is set to become the fourth US state to fully prohibit cryptocurrency ATMs and kiosks after Governor Josh Green signed House Bill 1642 into law in July. The measure follows the bill’s passage in the state legislature in May and targets machines that take US dollars from customers in exchange for digital assets.

State officials tied the move to fraud concerns. The law cites Federal Bureau of Investigation data showing widespread losses linked to digital-asset scams, including hundreds of complaints from Hawaii residents in 2025 and roughly $80 million in losses in the state.

What the new law bans

House Bill 1642 establishes a full ban on “the ownership, operation, or management” of a digital financial asset transaction kiosk that accepts US currency in return for a digital financial asset. In practice, that covers crypto ATMs and similar kiosks operating in the state.

The enforcement date is Oct. 1, when Hawaii is expected to join a small group of states that have opted for a complete prohibition rather than tighter operating rules.

Scam losses were central to the case

The legislation points to figures from the FBI’s Internet Crime Complaint Center, which reported in April that Americans lost more than $11 billion to scams related to digital assets in 2025.

According to the same data cited in the bill, Hawaii residents filed 826 crypto-related complaints in 2025. The reported losses in the state totaled about $80 million and included cases involving ATMs and kiosks.

How Hawaii compares with other states

With this law, Hawaii follows Minnesota, Tennessee and Indiana, which have also enacted total bans on digital asset kiosks. Those states began enforcing their restrictions in August, July and March, respectively.

Elsewhere, lawmakers have taken different approaches. Proposed bans in Delaware and New Jersey had not been signed into law as of August, while South Dakota and Wyoming passed laws that impose strict guardrails on crypto ATM activity rather than banning the machines outright.

Existing machines and the next step

CoinATMRadar data showed that 57 crypto ATMs and kiosks were operating across four of Hawaii’s main islands as of Wednesday. Those machines are expected to be affected once the statewide prohibition takes effect.

The next confirmed milestone is the Oct. 1 enforcement date. At that point, Hawaii is expected to formally implement the ban authorized under House Bill 1642.

Source: cointelegraph.com