Hawaii will make it unlawful to run a crypto kiosk that takes cash from customers starting October 1, under a measure Governor Josh Green signed on July 9 as Act 224.
The law adds a section to the state's consumer protection statute making it an unlawful practice for an operator to own, operate or manage a kiosk in Hawaii that "accepts United States currency from a customer in exchange for a digital financial asset." Each prohibited transaction counts as a separate offense.
Targeting depositsThe same report cites investigations by the attorneys general of Washington, DC and Iowa which found more than 93% of transactions at the kiosks they examined were scam transactions. Since consumers have other ways into digital assets, the committee concluded, banning purchases outright was appropriate.
Staff working near the kiosks told the state's consumer affairs department that most people using them are kupuna, or elders, who appear panicked or frightened.
