HONOLULU (Island News) – The Hawaii State Legislature has passed a measure aimed at protecting residents from cryptocurrency-related fraud schemes.
House Bill 1642 CD1 establishes new regulations for cryptocurrency ATMs across the state. The legislation prohibits consumers from using cash to purchase cryptocurrency at these kiosks but still allows people to cash out cryptocurrency they already own.
“The measure strengthens consumer safeguards and provides additional protections for vulnerable populations, particularly kupuna who are often targeted by sophisticated scammers and coerced to deposit large sums of money into these kiosks,” said Rep. Scot Z. Matayoshi, chair of the House of Consumer Protection & Commerce Committee and introducer of HB1642.
According to Matayoshi, cryptocurrency scams have caused approximately $240 million in fraudulent losses nationally in the first six months of 2025. The legislation addresses a growing trend where scammers target vulnerable residents, particularly seniors.
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“Scammers often pose as law enforcement or courthouse officials over the phone to feign a sense of urgency. Once the cash is converted to cryptocurrency, the scammers will often use the cryptocurrency to launder money, which takes local money out of our state’s economy. This indicates the urgent and significant threat to the financial safety of the residents of this State,” said Matayoshi.
The bill reflects Hawaii’s commitment to strengthening consumer protection in an evolving digital economy. By regulating cryptocurrency kiosks, lawmakers aim to protect residents from increasingly sophisticated scams while maintaining access to legitimate cryptocurrency transactions.
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