Hawaii will make it unlawful from Oct. 1 to operate a kiosk that accepts U.S. currency in exchange for a digital financial asset under Act 224, signed by Governor Josh Green on July 9, tightening consumer-protection rules around crypto kiosks after lawmakers linked them to a surge in fraud. The measure does not fully shut down the machines: kiosks may still dispense U.S. currency for crypto or exchange one digital asset for another, but each prohibited cash-to-crypto transaction will count as a separate offense. Lawmakers said the restriction was aimed at scams that pressure victims, often older adults, to feed cash into a machine and send cryptocurrency to a wallet controlled by a fraudster. A committee report cited investigations by the attorneys general of Washington, DC and Iowa that found more than 93% of transactions at the kiosks they examined were scam transactions. FBI Internet Crime Complaint Center data cited in the coverage showed 92 kiosk-related complaints from Hawaii residents in 2025 with $3.85 million in adjusted losses, alongside 826 crypto complaints statewide totaling about $80 million. Hawaii banking commissioner Dwight Young said criminals favor the machines because they are anonymous and difficult to trace. CoinATMRadar lists about 57 crypto ATMs across four Hawaiian islands, and Hawaii joins a broader state-level push as Texas weighs a ban and Delaware advances its own bill.