Hawaii bans cash-to-crypto ATMs, Arizona refunds victims

Hawaii will ban cash-to-crypto ATM transactions from October 1, targeting scams. The law allows crypto-to-cash and crypto-to-crypto services. Arizona's new law has refunded $171K to scam victims.

Hawaii will enforce a ban on cryptocurrency ATMs and kiosks starting October 1, following the signing of House Bill 1642 in July. The new law prohibits the ownership, operation, or management of digital asset transaction kiosks that accept US currency in exchange for digital assets. This measure specifically targets cash-to-crypto transactions, aiming to address rising concerns over scams. According to the FBI, digital asset-related scam losses are projected to exceed $11 billion nationwide in 2025, with Hawaii residents reporting $80 million in losses and 826 complaints. While some sources describe the law as a total ban, it still permits crypto-to-cash and crypto-to-crypto services, focusing restrictions on cash-based transactions. Hawaii joins Minnesota, Tennessee, and Indiana in enacting similar bans, while other states are considering or have implemented related restrictions. In contrast, Arizona's new law has enabled 35 scam victims to recover $171,332 from crypto ATM fraud since September 2025, requiring prompt reporting and refund eligibility for new customers.