HONOLULU (HawaiiNewsNow) – Gov. Green has until the end of the month to send his intent-to-veto list to lawmakers. Among the legislation he is considering is a bill that would ban using cash to buy cryptocurrency at kiosks.
Supporters like AARP say losses from crypto scams in Hawai’i reached into the millions of dollars and are likely underreported. Opponents say the numbers are exaggerated and are lobbying for a veto, saying the legislation hurts low-income residents of all ages and small businesses.
Bill details
House Bill 1642, passed by the Legislature, prohibits consumers from using cash to buy cryptocurrency at kiosks while still allowing consumers to cash out cryptocurrency they already own.
State Rep. Scot Matayoshi said it protects kupuna from scammers.
“The benefit to those very few people who would rather pay cash for crypto rather than buying it on their phone, buying it on their computer, things that were not banning doesn’t outweigh the massive amount of scam and illicit activity going through these crypto kiosks,” said Matayoshi, who’s the House Consumer Protection and Commerce Committee chair.
Matayoshi, an attorney, said he saw first-hand how scammers can sound convincing. He almost fell for a crypto scam when a person claimed he missed a court date.
“They sent me to a crypto kiosk at a Safeway to try to pay them the $1,000 fine that they were threatening arrest on,” he said.
Fraud concerns
Craig Gima, AARP communications director, said kiosks are being used as tools for fraud.
“They’re being used like the getaway car in a bank robbery. The fraudsters will steal money, convince consumers they need to take money out of their bank, and then they need a way to collect it,” Gima said.
AARP says the legislation would save the state money, citing Hawai’i crypto scams reported to the FBI. In 2024, the losses were just under $1 million. In 2025, they jumped to $3.85 million.
Industry opposition
Hilt Ventures says it is the largest cryptocurrency ATM operator in Hawai’i with 21 out of 59 kiosks in various convenience stores. Owner/operator Chip Meyers said if the legislation becomes law, the Hawai’i side of his business would shut down.
“This is going to hurt lower income, middle class people who are unbanked and underbanked who don’t have access to financial services outside of these kiosks, who cannot go online, who can’t get good credit,” Meyers said.
Meyers said in one year, there have been five scams totaling $5,000 affecting his company and Hilt Ventures returned the fees to the customers. He said guardrails are already in place for those 55 years and older.
“A lot of misinformation, hysteria has been used and we’re just trying to get the facts out at this point,” Meyers said.
In a statement, the governor’s office said he “will carefully review this bill and other legislation enrolled to him. Decisions relating to these bills will be released at the appropriate time.”
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