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Hawaii Bans Crypto ATMs, Fourth State to Do So

Hawaii Bans Crypto ATMs, Fourth State to Do So

Hawaii will ban cryptocurrency ATMs and kiosks starting October 1, making it the fourth U.S. state to do so. The ban is a direct response to scams that have been run through the machines, which allow people to buy digital currency with cash.

Why the state acted

The state cited scams involving crypto ATMs. These machines let people deposit cash and receive digital currency, and scammers have used them to collect money from victims. The ban is meant to cut off that channel. Hawaii's move follows a pattern of fraud that has been reported across the country.

Who's affected

The ban applies to all crypto ATMs and kiosks in Hawaii. Operators will have to remove or disable their machines by the deadline. After October 1, the machines won't be allowed to operate in the state. That means anyone looking to buy crypto with cash will have to find another way.

A growing list

Hawaii is the fourth state to ban crypto ATMs, following Minnesota, Tennessee, and Indiana. The earlier bans were also driven by concerns over fraud. The trend suggests states are taking a harder line on the machines, which have become a common tool for scammers.

The ban takes effect on October 1, 2026. Operators have until then to comply. The state hasn't said how it will enforce the ban, but the deadline is clear.