Hawaii Tightens Crypto ATM Rules Over Scam Concerns

The United States is taking stricter measures as more countries are taking a cautious approach to crypto ATMs. While many US states have already banned these machines, Hawaii has become the latest to join the trend. Amid growing concerns over potential scams and thefts, Governor Josh Green moves to make the use of crypto ATMs unlawful in the state starting October 1, 2026.

However, the law does not intend to ban Bitcoin ATMs completely in the US state. Despite restrictions, people can still use them to sell cryptocurrencies for US dollars. But cash-to-crypto purchases will be completely prohibited.

Hawaii to ban cash-to-crypto transactions on crypto ATMs

As part of the US states’ increasing efforts to protect crypto users, Hawaii has introduced new restrictions on the use of Bitcoin ATMs. Although the state authorities do not completely ban the use of these machines, cash-to-crypto transactions will no longer be allowed. But users can still use ATMs for crypto-to-dollar transfers.

Notably, the law is introduced to protect crypto users from scammers and illegal players who target Bitcoin ATMs and kiosks. From October 1, people in Hawaii will not be able to deposit cash into these machines to purchase assets. Those who already hold crypto can use the machines to convert it into cash. Until the mentioned date, users are urged to remain cautious while using the kiosks. The authorities have already asked them to stay alert to suspicious calls, messages, and emails.

The move comes after the US state identified a growing number of crypto ATM scams and fraud. According to data released by the FBI, Hawaii residents have lost around $3.85 million to scams involving cryptocurrency kiosks in 2025. This marks nearly four times the losses reported in 2024.

Hawaii leads crypto ATM crackdown in the US

Interestingly, Hawaii’s latest crypto ATM crackdown is a part of the US state’s increasing efforts to protect crypto users against possible scams. The authorities identified that scammers are increasingly using crypto ATMs to amass funds from victims. This forced the authorities to introduce tighter rules to govern Bitcoin ATMs.

Hawaii Banking Commissioner Dwight Young stated that crypto ATMs are now the scammers’ favorite tools to steal digital assets. This is because Bitcoin ATM attacks are hard to trace. He added,

“It usually starts with some unsolicited phone call, text message or email. They’ll say your bank account is compromised, or you missed jury duty and then they’ll get you to withdraw cash from your bank and put it into these ATMs.”

With the new rules, Hawaii has become the first US state to prohibit crypto ATMs’ cash-to-crypto purchases. Other states like Indiana, Tennessee, and Minnesota have also imposed other restrictions on digital asset kiosks amid rising threats. Besides complete bans, some states have also introduced transaction limits, refund requirements, and other additional consumer protection measures.

Other countries have also launched strict measures to tackle rising scams related to kiosks. For example, as CoinCodex recently reported, Australia is one of the latest countries to take a similar move. AUSTRAC halted registration of Cryptolink, resulting in the closure of 96 connected crypto ATMs across the country.