HI HB1642

Prohibits ownership, operation, or management of cryptocurrency ATMs (digital financial asset transaction kiosks) in Hawaii that accept U.S. currency in exchange for digital assets, effective October 1, 2026

Kiosks that exchange one digital asset for another or convert digital assets to U.S. currency remain permitted under the bill

Addresses fraud concerns citing FBI data showing over 10,956 complaints in 2024 with approximately $246.7 million in victim losses from kiosk-related scams, a 99% increase in complaints from 2023

Targets elder fraud schemes where scammers pose as government officials or company representatives and direct victims to deposit cash at crypto kiosks

Each transaction violating the prohibition constitutes a separate offense under Hawaii's consumer protection laws (Chapter 481B)