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You'll need a Bitcoin wallet before you buy since some exchanges require one.

Don't have a wallet? Read our guide on the best Bitcoin & cryptocurrency wallets.

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Every year Bitcoin becomes more and more accessible and practical in everyday life. Major companies like Microsoft and Overstock have all begun accepting Bitcoin for some purchases.

While one of the primary purposes of Bitcoin was to empower users, governments have been trying their best to regulate the digital currency. This has caused unfriendly Bitcoin laws and has discouraged exchanges from doing business with people living under certain regulations.

Unfortunately, Bitcoiners in Hawaii among others, have fallen victim to these unfriendly regulations and rules.

The city of Honolulu on the Hawaiian island of Oahu

As a result, Coinbase and other major exchanges have stopped dealing Bitcoin to Hawaiians.

Purchasing Bitcoin in Hawaii is still perfectly legal. However, it’s become more complex.

The History of Bitcoin in Hawaii

To understand the struggle of buying bitcoin and cryptocurrency in Hawaii, you need some brief history first.

Up until 2016, users could buy Bitcoin in Hawaii, just like most other states. In September of 2016, Hawaii lawmakers created a law that would make it mandatory for exchanges to hold cash reserves for collateral.

If a Hawaiin Bitcoiner owns $10,000 worth of BTC, the exchange would need to hold $10,000 of cash for the customer as well.

Exchanges that adhered to this new law would be sacrificing a magnitude of dollars just to comply with an incomprehensible rule.

Hawaii instigated a draconian money transmitter license law for exchanges

Coinbase, one of the biggest exchanges, was discouraged by the law’s impracticality — calling the regulation “untenable.”

Exchanges are still seeking a better deal with legislators to pass fairer laws regarding digital currency. To no avail, news bills and efforts have all stalled in the Hawaiian House and Senate as of October 2019.

However, in August of 2020, regulators granted a special license-free status to 12 firms on a pilot program to see how things go in the state, so hopefully this will show regulators they do not need to stifle the growth of these firms in their state.

How to Buy Bitcoin in Hawaii

What this all means is that, while there is hope, if you’re a Hawaiian, you might have a few more struggles than the average Bitcoiner, but that shouldn’t stop from getting in on the action. There are a handful of ways for you to trade, just beware of fees and make secure trades.

Hawaiians aren’t able to use all of the same exchanges that the rest of America is privileged with, but they do have options.

You can use any of the exchanges outlined above. There are several exchanges offering Bitcoin in Hawaii, and you can easily select one based on your requirements and preferences using our guide. Different exchanges have different transaction fees, withdrawal limits, payment modes, and verification processes that need to be kept in mind before users select one.

Additionally, Bitcoin buyers need to keep in mind the fact that certain exchanges might require them to get a wallet of their own before they are able to buy the digital currency. Also, it is recommended to have a wallet of your own for security reasons, preferably a hardware wallet. If you don’t have a wallet, refer to our guide on the Best Bitcoin and Cryptocurrency Wallets to choose one.

Another way to buy Bitcoins in Hawaii is through automated teller machines (ATMs). These ATMs allow users to instantly purchase the cryptocurrency using cash, and most of them only require a telephone number for verification, so long as you aren’t buying a lot of Bitcoin. This makes them more private than exchanges.

Local Bitcoins is another option. Here, you can buy and sell Bitcoin for a wide range of payment methods, from gift cards to bank transfers. Local Bitcoins is a peer-to-peer (P2P) exchange, where you buy and sell with another individual. This does introduce a degree of risk, though by ensuring that you conduct all business on the platform, make use of its escrow services, and only trade with users who have a good reputation, you'll minimize any potential problems.

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Hawaii has access to many large Bitcoin and cryptocurrency exchanges.

Have a look at our favorites below:

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There are three main types of Bitcoin wallet and all of them are supported in Hawaii:

• Software (desktop or mobile - iOS and Android wallets
• Hardware wallet
• Cold-storage (paper or steel wallets, the latter of which are used to backup your main wallet.

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Fake Electric Company Threats

In August of 2018, various Hawaiian businesses began reporting calls from scammers claiming to be from various Hawaiian electric companies.

In the call, the scammers would claim the business was delinquient on their electric bill and demand payment in Bitcoin immedietely or lose their electricity.

However, no Hawaiian electric company accepts Bitcoin as a form of payment so anyone who receives a phone call like this one should just hang up and ignore it.

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Does Coinbase work in Hawaii?

Users in Hawaii cannot use any of Coinbase’s services.

Does Gemini work in Hawaii?

Users in Hawaii can use all of Gemini’s products and services.

Does Coinmama work in Hawaii?

Users in Hawaii cannot use any of Coinmama’s services.

Does Kraken work in Hawaii?

Users in Hawaii can use all of Kraken’s products and services.

Where Can I Find a Bitcoin ATM in Hawaii?

There are 5 Bitcoin ATMs in Hawaii: * 1 on the island of Kauaʻi at the GreenteaHAWAII in Kapaa city. * 3 in Honolulu. * 1 at Vape Kings in Kapolei.

The best way to find a Bitcoin ATM in Hawaii is to use CoinATMRadar.com.

Here, you can filter by any of the most popular cryptocurrencies, find ATMs that support buying, selling, or both, and find stores and merchants that offer crypto services.

Why doesn’t square sell Bitcoin to Hawaii users?

Hawaii is one of the excluded states for Bitcoin buying in Square's Cash App because of the rules in Hawaii involving sales of crypto. Square would need to hold the equivalent dollar amount of USD that you, as the user, hold in Bitcoin on their platform. This makes the service impossible to offer since the company would lose money.

How can I Buy Bitcoin in Hawaii?

The best way to buy Bitcoin in Hawaii is to create an account on one of the exchanges listed above and make a purchase on their platform, or create a profile on LocalBitcoins.com and look for offers.

How do I sell Bitcoin in hawaii?

Just as with buying, the best way to sell Bitcoin in Hawaii is to create an account on an exhcange platform that supports Hawaiians or create a profile on LocalBitcoins.com and make an offer.

Is Bitcoin illegal in Hawaii?

Bitcoin is not illegal in Hawaii. It is just very hard for exchanges to operate in the state of Hawaii because of the reserve restrictions required by law. This makes purchasing Bitcoin more difficult than it is in other states. You are, however, allowed to own, buy, and sell Bitcoin if you can find others to trade with.