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

[Oshosondy]

This was the last topic I created about crypto ATM regulations in United States: https://bitcointalk.org/index.php?topic=5589999.msg66997383#msg66997383

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.

They want to make sending of crypto no possible after buying with cash. I think they have noticed that most people that are sending cryptocurrencies to the scammers are lured by the scammers to convert dollar to crypto before sending.

https://www.hawaiinewsnow.com/2026/08/12/new-hawaii-law-banning-cryptocurrency-atm-deposits-take-effect-oct-1/

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.

[Yamane_Keto]

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.

They want to make sending of crypto no possible after buying with cash. I think they have noticed that most people that are sending cryptocurrencies to the scammers are lured by the scammers to convert dollar to crypto before sending.

Those who trust scammers will find another way to send them money; banning the use of ATMs will not stop them.

[aoluain]

$3.85 million in losses through fraud involving cryptocurrency kiosks in 2025

This is about dodgy ATM's and scammers using them to scam people, definitely would be staying away
from them.

If they are identified as dodgy machines cant the authorities apprehend the scammers whe they come
to collect the cash?

Is like "one way traffic", it seems like they have no issue with users wanting to sell their Bitcoin for cash
at least they can still be an option as an untraceable option.

Anyway I would love to use a Bitcoin ATM to convert cash to Bitcoin even with paying a premium but if
I have to go through some form of identification process I would not use them.

[Slow death]

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.

[Ojima-ojo]

Total ban of crypto ATM is not a solution, and remember the scammers are making use of cryptocurrency ATM just as means to transfer their victims physical cash, is not as if the law enforcement agency wants to track the scammers there is a possibility through the receiving wallets and forensic analysis,.

Is the problem with Crypto ATM


The answer is no, but ATMs are just tools in the hands of the bad actors which is the scammers, it will be better for the government to create awareness around how to avoid becoming victims of scams most especially online.

[Rruchi man]

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.

If the government is already aware of the mode of operation of these scammers who were involved in these kiosk scam, They should conduct massive orientation programs to let citizens know and be aware because scammers are really smart, and if the governments are moving to avoid direct crypto deposits into these Bitcoin kiosk machines, scammers will devise another method to ensure that they work on their victims and get the victims to send money to them in any part of the world they are in.

This move to ban deposits in kiosk machines is good but can be better if tagged up with massive orientation campaigns aimed at letting citizens know how these scammers operate.

[KiaKia]

Will only use such services if it's emergency and using one is the only option I have left, I doubt it's going to ever happen anyways, I've never used Bitcoin ATM before and even if they are everywhere I won't be using one, because I have no reason to use one.

Why did I feel like using Bitcoin ATM isn't helping decentralisation in any way? Because every person's that visit a Bitcoin ATM just exposed themselves as someone who have some Bitcoin.

In a state or city where wrench attack is ongoing do you think that Bitcoin ATM machines should exists in such place? Even countries that wrench attacks aren't popular yet, that ATM machine will just cause problems.

[Cryptohygenic]

They want to make sending of crypto no possible after buying with cash. I think they have noticed that most people that are sending cryptocurrencies to the scammers are lured by the scammers to convert dollar to crypto before sending.

I don't know if the if they may have some undisclosed intentions on that notation as it is also undoubtedly that the government too is forcing in to have its own sector paired with the crypto block chain to maintain relevancy of the dollar or in overall cash.
It is also true that bitcoin is not competing with the traditional currency but due to its fast growing and admirations of user's in facilitating transactions, the authorities fears that if the dollar is not effective in the process, the dollar might be fading out of its dominance.
So, suspending crypto currencies as means of processing transactions to other parties will keep the dollar relevance while emphasizing such authoritative power can only be effective in the regulating sectors such as the ATM spots.
In the other hand, the ideal is to keep track of user's and makes it easier to trap scammers.

[BlackHatCoiner]

If someone is gullible enough to send their life savings to some random person on WhatsApp, banning a kiosk isn't going to save them. You can idiot-proof the machine, but you can't idiot-proof the user.

Just another moronic justification to ban Bitcoin.

[Pumpsta]

I mean it's not good but I won't suffer from this.... atms nowadays are just like kyc machines with a tax they're like ancient, indian scammers love them, hopefully more kyc stuff gets banned, it's a win imo

[348Judah]

This was the last topic I created about crypto ATM regulations in United States: https://bitcointalk.org/index.php?topic=5589999.msg66997383#msg66997383

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.

They want to make sending of crypto no possible after buying with cash. I think they have noticed that most people that are sending cryptocurrencies to the scammers are lured by the scammers to convert dollar to crypto before sending.

Right from time, I'm part of those that don't even admire the use of Bitcoin ATM for any reason, so I'm still wondering why some are more interested in using this to perform a transaction, when we all know that the cost of the transaction fee is even high compared to normal one, scammers will definitely want to take advantage of some areas over this aspect and attack possible and scrupulous users of the Bitcoin ATM.

[GeorgeJohn]

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.

If such law stands firm, it will restrict many people who will genuinely wants to deposit cash in bitcoin ATM machine...their action is reasonable but it will affect the masses...

They want to make sending of crypto no possible after buying with cash. I think they have noticed that most people that are sending cryptocurrencies to the scammers are lured by the scammers to convert dollar to crypto before sending.

That's a big inconvenience to people that deposited genuinely with cash, someone can decide to send their bitcoin to another wallet, and making it impossible to people who deposited with cash, it will cause a general problems to user's of bitcoin ATM machine...

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.

Scammers are everywhere, so we need to take precautions in whatever we are do...most of the things that lured people to be scam by scammers is greedy...if some people reject to make a huge profit with a peanut, they can't be victim of scam..So instant profit with little amount of capitals is one of the factors that makes people to be scammed by scammers.

[Renampun]

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.. but at least this law is better than completely banning crypto ATMs just to reduce scams, which doesn't really address the problem, and seems like it's just to reduce the adoption of Bitcoin in more places. However, I think regulators should focus more on educating people about how these scams work rather than restricting access to crypto ATM, because that's what's important in helping people understand how scams work.

[sokani]

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.

If KYC verifications will help, it will only be in a few cases where the scammers have their "money mule" in Hawaii, who collects the money and sends it to his fellow scammers abroad. But in most cases, it's the victims that are buying the crypto themselves at the ATM machine and sending it to the scammers.

[Dunamisx]

I will have to support this ban on use of bitcoin ATM because they are so many atrocities beer committed as a result, aside being scammed using different tactics over the use of Bitcoin ATM, I think it is still not the best ideal way for bitcoin users to perform their transaction in a safety manner if we are going to consider for privacy and security measures, what the government are doing is really in favor of every bitcoin users without them knowing.

[Die_empty]

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.

Taking some measures can be more productive than an outright ban. Not allowing cash deposits will affect some good users of the ATM because it is not only scammers that use the machine. I like when the government thinks outside the box instead of following the status quo. Hawaii needs to tackle the rise in Bitcoin ATM crime because it is increasing in the US.

Texans reported $56.8 million in crypto kiosk losses in 2025, more than any other state, across 1,179 FBI complaints.
National losses rose 58% to $389 million from 13,460 complaints.

[Donneski]

Why ban the ATM when they can only ban the deposits? Banning the deposits I think you've been a fair decision because the ATM it self doesn't seem to be the problem rather it's how scammers use it to receive money from their victims. Banning the part that's being abused by scammers which is the deposits while people can still use the ATM machines I think would've been a more reasonable and considerable move.

[SatoPrincess]

That's a big inconvenience to people that deposited genuinely with cash, someone can decide to send their bitcoin to another wallet, and making it impossible to people who deposited with cash, it will cause a general problems to user's of bitcoin ATM machine...

Maybe it’s just me, but I don’t see the perks in using bitcoin ATMs to buy/send bitcoins. The fees are just not worth it. If your goal is to maintain privacy, you could buy bitcoins from decentralised exchanges. In my opinion, bitcoin hodlers patronise bitcoin ATMs much, it’s mostly the elderly who are victims of a romantic scam or hyip scam.

[X-ray]

Way better than the other regulation where the company need to refund the victim of romance scam and misplacing the criminal responsibility.

This regulation will also prevent people from getting overcharged with premium rate and high fee, those ATM are notoriously known for this.

If the government can funnel the customer into better service with better conversion rate, another win for new people who want to buy Bitcoin and not getting overcharged on their first day.

Maybe it’s just me, but I don’t see the perks in using bitcoin ATMs to buy/send bitcoins. The fees are just not worth it. If your goal is to maintain privacy, you could buy bitcoins from decentralised exchanges. In my opinion, bitcoin hodlers patronise bitcoin ATMs much, it’s mostly the elderly who are victims of a romantic scam or hyip scam.

Their rate is the worst and fee is high, but I guess having an alternative won't hurt.

Maybe some people want to cash out their Bitcoin straight out of the ATM and get cash directly. Even though with all these scams, the reputation of Bitcoin ATM is hitting a new low.

The deposit is the real problem here and why I think the law is on point, if you're not victim of romance scam or hyip, you get charged with premium rate.

On the other hand if you're a victim of romance scam or hyip, you get both charged at premium rate and lose your money. The deposit is like a tourist trap.