New Hawaii law banning cryptocurrency ATM deposits to take effect Oct. 1

[Pumpsta]

Is there anyone from Hawaii on here? I am curious what's happening right now over there, are there any form of attacks or wrench attacks that haven't made it to the public yet?

This could be the only reason why they are bringing this law to life, there must have been so many scams and attacks related to ATM machines and so on.

Anyways, this Bitcoin ATM machines will probably create more problems than they fix, it's not very crucial that they should exist, I don't just see any reasons why, maybe someone can confuse me

Are you serious man? Wrench attacks could be the only reason they're bringing it to life? What about indian scammers making grandmas go & deposit all their life savings in 1 veeery big transaction? Like, wrench attacks are really bad but c'mon

[Dogedegen]

Hawaii will be the next to tackle how scammers are using it as tools to scam their victims, but only deposit will be banned. Consumers will no longer be able to deposit cash into the kiosks to buy cryptocurrency. Consumers with existing accounts can still convert their crypto into cash and make withdrawals.

Passport verification combined with iris scanning (biometric) will reduce these risks. Selling Bitcoin using ATMs may incur high fees, but it is a good option in emergencies.

That is not related at all with what is happening here because you are trying to imply that deep KYC will reduce the risk relating to deposit scams, but even if you were talking about the other direction so selling crypto it would not reduce anything. You can even ask for a DNA scan and people who fall for this kind of scam will still happily do it and then put the cash into the machine to pay the scammer. This is an issue that is not solved by prohibitions, even if in this case at least the law allows transactions in one way. This would still be a big blow to the operators of the machines when it comes to revenue, and we will see a decrease in the number of machines where this happens. A complete ban of crypto ATMs does not solve this because people who fall for this kind of scam will still fall for the scam, even if the payment method changes they will just change to something else again like gift cards. If we could somehow educate the big number of people about these things so that they don't fall for them that would solve this problem for every industry that is affected.

Is there anyone from Hawaii on here? I am curious what's happening right now over there, are there any form of attacks or wrench attacks that haven't made it to the public yet?

This could be the only reason why they are bringing this law to life, there must have been so many scams and attacks related to ATM machines and so on.

Anyways, this Bitcoin ATM machines will probably create more problems than they fix, it's not very crucial that they should exist, I don't just see any reasons why, maybe someone can confuse me

Are you serious man? Wrench attacks could be the only reason they're bringing it to life? What about indian scammers making grandmas go & deposit all their life savings in 1 veeery big transaction? Like, wrench attacks are really bad but c'mon

Some users here like to write anything, you can see this a lot more in the gambling section. Wrench attacks have nothing to do with the ATMs, it is not related at all to the issue here but it is about the type of scams that you have described. Wrench attacks can be dangerous like we see in France, but it is not related.

[MainIbem]

I like this approach they took, since the ATM is still useful it's better to make it tough for scammers to use it as a tool than ban it completely, maybe other states that banned it completely could learn from it and reconsider bringing back the crypto ATM's. Scammers have made  cryptocurrency look like a tool created for scam and i like it when measures like these are taken to make it tougher for them to achieve their ATM, Hawaii just ended the use of crypto ATM for deceit and it's impressive.

[Hamza2424]

I think this is better than what those states on the first link did which is total ban of the ATMs.

If they like, they should not know how to avoid scam. Scammers will still scam those that are ignorant of scam and people that are not intelligent enough to know that it is a scam.

That's a good step. If they can do this here, why did they not choose to do it in other places where they have banned the BTC ATMs for the same reasons? This step shows that they don't want this technology to die because tourists must be using it a lot, as it can be really helpful for foreigners travelling there.

Withdrawals is all they need it for. Mostly, they won't even use it for withdrawals because they must have their people for P2P. I have some in my account saved on Binance and some others to whom I can make P2P deals, but not bigger than $500 at a time haha.

[Franklyn-wood]

At least for now, this seems to be the best solution: people who have Bitcoin will be able to withdraw it from ATMs, and people who want to buy Bitcoin using fiat currency will be able to use other means. I see this problem as a trigger for more KYC. people will have to accept buying Bitcoin through channels that require KYC verification, and I wouldn't be surprised if governments also force exchanges and wallet creators to have physical offices. Because one of the main reasons thieves like to steal online is because of impunity; they are anonymous online, so they have no fear.

Yes it is good if the government will support the introduction of Bitcoin ATM machine as it will aid the easy movement of Bitcoin and the transaction.
It may attract thieves to vendors that operates or uses Bitcoin ATM there fore puting them at risk, it also may increas service and other, it may forfeit the original purpose Bitcoin as a decentralized digital currency. This is also possible if an average number of people in the con
tries are accept it uses.

[Botnake]

At least for now, this seems to be the best solution: people who have Bitcoin will be able to withdraw it from ATMs, and people who want to buy Bitcoin using fiat currency will be able to use other means. I see this problem as a trigger for more KYC. people will have to accept buying Bitcoin through channels that require KYC verification, and I wouldn't be surprised if governments also force exchanges and wallet creators to have physical offices. Because one of the main reasons thieves like to steal online is because of impunity; they are anonymous online, so they have no fear.

Yes, imposing KYC will still be the end goal here. This is not to protect the bitcoin users and holders actually, but this is to monitor all the transactions of bitcoin owners because that's how a centralized platform should be, they hate the idea of going into decentralized because suspicions will highly arise.

For most of us, this might be the best solution for now. But what we have overlooked is that slowly the government is starting to control our bitcoin, and build access on our bitcoin.

[Lida93]

The decision of the Hawaii government is only looking better than those of states in the US only because in Hawaii it's not a complete ban of the operation/use of cryptocurrency ATM but it wouldn't change much because scammers would always find a way to evade.
what I have to point out straight is that both governments are making similar mistake of not onboarding an orientation approach about the existence of these scams activities and how they're manifested.

[moneystery]

Even though scammers can still find ways to scam people, I think that the Hawaiian government's steps are much better than other states in the US that directly ban crypto ATMs, instead of looking for solutions to reduce the number of potential scams.
But still these regulations may also need to be improved because scammers will continue to improve their way of scamming people, and these regulations alone will not be enough. There needs to be cooperation from crypto ATM providers to create features that can help users avoid scams.

[Z-tight]

I don't think this law has a significant impact on reducing the number of scams, because scammers will definitely still find ways to scam people..

You are wrong, you need to look up how scammers trick people through BATM's. Understanding how it works would help you to know how this law would effectively put an end to it. Though it would also probably reduce demand for crypto kiosks in Hawaii, and eat deep into their revenue.

As soon as the ban takes affect, you can no longer feed cash into these machines to buy BTC, which is what the scammers take advantage of to scam people. You can only use this machine to sell BTC and have cash dispensed to you, and i don't know how many people would want to use a BATM in that direction.

[Orpichukwu]

The decision of the Hawaii government is only looking better than those of states in the US only because in Hawaii it's not a complete ban of the operation/use of cryptocurrency ATM but it wouldn't change much because scammers would always find a way to evade.
what I have to point out straight is that both governments are making similar mistake of not onboarding an orientation approach about the existence of these scams activities and how they're manifested.

It’s better than doing nothing, and this is not just about tackling scammers; they are also using this same policy to limit how people can buy and withdraw crypto down to their self-custody wallet. And for working on how to enlighten people on how to avoid scams, I believe no country has been dormant; they have all been trying. The victims are just too stubborn to listen and easily trust online, which gives these scammers access to penetrate and scam them.