Hawaii to Ban Cash-to-Crypto ATMs From Oct. 1

Cryptocurrency ATMs let users convert cash into digital assets within minutes, but their speed and the difficulty of reversing blockchain transfers have made them a favored payment channel for impersonation, romance and family-emergency scams. Minnesota regulators said earlier safeguards, including transaction limits and warnings, were being circumvented as fraudsters coached victims through deposits. Older residents have been hit particularly hard, prompting the state to replace regulation with an outright ban.

Minnesota’s Chapter 65 took effect on Aug. 1, 2026, barring the installation, operation, maintenance or public availability of virtual currency kiosks. Operators must take machines offline and remove them from public locations by Dec. 31. The Minnesota Department of Commerce recorded 134 kiosk-scam complaints from 2023 through 2025, with reported losses nearing $1 million; 70 cases and more than $540,000 of losses occurred in 2025 alone. State figures put overall digital-asset fraud losses in 2025 at $151 million.

Cryptocurrency ATMs allow people to use cash to buy virtual assets and send them to designated wallets. But because the transactions are irreversible and fund flows are difficult to trace, the machines are frequently exploited in government-impersonation, investment and elder-fraud schemes. The Federal Bureau of Investigation recorded $333 million in losses from related scams in 2025, prompting states to tighten regulation.

Tennessee Governor Bill Lee signed HB 2505 on April 13, 2026, with the law taking effect on July 1 and making Tennessee the second U.S. state after Indiana to impose a comprehensive ban on the machines. Installing, hosting or operating one constitutes a Class A misdemeanor. The state had about 185 machines before the law took effect, and a federal court rejected a request from operators including CoinFlip to block its enforcement.

Crypto ATMs allow people to quickly buy and sell digital assets with cash, but transactions are difficult to reverse and scammers often use the machines to induce victims to transfer funds. Delaware and New Jersey are therefore considering a tougher approach than transaction limits, cooling-off periods and identity checks: a complete ban on installing and operating the machines to reduce financial fraud risks.

Legislative committees in Delaware and New Jersey recently approved bills banning crypto ATMs, moving them to the next stages of the legislative process. If the measures clear their remaining reviews and take effect, installing or operating such machines would be prohibited in both states. One basis for the legislation is FBI data showing that losses from related scams reached $388 million in 2025.

Crypto ATMs allow people to buy and sell digital assets with cash, but transactions are difficult to reverse and scammers often instruct victims to deposit funds through the machines. The Haverhill City Council in Massachusetts believes the devices pose financial fraud and money-laundering risks and that existing regulation and consumer protections are inadequate, prompting it to consider a blanket ban.

The Haverhill City Council is set to review the crypto ATM ban. If the measure passes, operators will have 60 days from its effective date to remove all such machines from the city. Any device left in place after the deadline will incur a fine of $300 per day until it is removed. The city hopes the ban will reduce the risk of residents losing money to scams and being unable to recover it.