Hawaii authorities have decided to impose a complete ban on crypto ATMs within the state in response to the rapid rise in fraud related to digital currencies. This move is the first of its kind in the U.S. and aims to strengthen the protection of citizens against financial crimes.

According to local law enforcement agencies, the number of complaints regarding fraud involving crypto ATMs has increased by more than 80% in the last 12 months alone. State residents have reported losses exceeding $5 million related to scams involving these devices. In most cases, the perpetrators convinced victims to transfer funds through crypto ATMs by promising quick profits or threatening consequences for nonpayment of fictitious debts.

The Hawaii Department of Financial Institutions stated that the ban takes effect immediately and will remain in place until new security standards are developed. Crypto ATM operators are required to remove all devices within the next 30 days. Authorities also plan to step up financial literacy campaigns and collaborate with federal agencies to track new fraud schemes.

Experts note that Hawaii’s decision could serve as a model for other states, where there has also been a rise in crimes related to digital assets. Authorities emphasize that their priority is to protect citizens from new threats emerging in a rapidly changing financial environment.