Technology (Emerging Technology)

This bill prohibits the operation of cryptocurrency kiosks in Hawaii that accept cash from customers in exchange for digital assets, effective October 1, 2026. The legislation aims to protect residents from financial scams by banning machines that allow users to insert physical currency to purchase digital financial assets. While the law still permits these kiosks to function if they accept digital assets to buy other digital assets or to dispense cash, it specifically targets the cash-to-crypto transaction model. The measure applies to anyone who owns, operates, or manages such kiosks within the state.

Establishes limits on transactions through digital financial asset transaction kiosks. Requires operators of digital financial asset transaction kiosks to use blockchain analytics and tracing software to prevent fraud; make certain disclosures; provide receipts to customers; provide full refunds under certain circumstances; and provide live customer service and a dedicated communications line for the Attorney General, Office of Consumer Protection, Department of Law Enforcement, and county police departments.

Prohibits law enforcement agencies and law enforcement officers from using biometric surveillance technology in the State unless certain conditions are met.

Establishes limits on transactions through digital financial asset transaction kiosks. Prohibits (1) the exchanging of United States currency, in an amount greater than $100, from new customers for digital financial assets; (2) any two customers from transacting to the same digital financial asset wallet address; and (3) beginning 1/1/2030, the exchange of United States currency from customers for digital financial assets. Requires operators of digital financial asset transaction kiosks to use blockchain analytics and tracing software to prevent fraud; make certain disclosures; provide receipts to customers; provide full refunds under certain circumstances; and provide live customer service and a dedicated communications line for the Attorney General, Office of Consumer Protection, Department of Law Enforcement, and county police departments. Effective 7/1/3000. (HD2)