Originally published on: August 07, 2024
Amid changing regulations and growing concerns, the city of Chico in California is gearing up to regulate Bitcoin ATMs, supported by a combination of state-level laws and local ordinances. This move comes as Andy Pickett, the chief administrative officer at the County of Butte, highlighted the importance of addressing the challenges associated with these crypto teller machines.
State Legislation Targets Fraud Cases
Recent legislative developments in California have been aimed at curbing fraudulent activities linked to Bitcoin ATMs. A legislative review in October 2023 revealed alarming practices, including exorbitant premiums of up to 33% and withdrawal limits as high as $50,000 at certain crypto ATMs. To address these issues, a new bill was passed to restrict daily deposits to $1,000 and mandate the provision of receipts and disclosure of operator information for all crypto transactions.
Local Regulation on the Horizon
While statewide measures are crucial, Pickett emphasized the need for localized regulation of Bitcoin ATMs. He noted that individual jurisdictions would have to enact their own ordinances to govern these machines, recognizing the potential for legal challenges that may arise in the process.
The City of Chico Setting the Pace
According to data from Coin ATM Radar, the City of Chico currently hosts 347 operational crypto ATMs, surpassing the total number of ATMs in key global economies like Hong Kong, Spain, Poland, and New Zealand. This abundance of Bitcoin teller machines underscores the importance of establishing clear guidelines to protect consumers and maintain financial integrity within the city.
California’s Crypto ATM Landscape
With 2,872 crypto ATMs scattered across various jurisdictions, California plays a significant role in the global Bitcoin ATM network. Recent trends indicate a shift in the installation of these machines, with 660 ATMs being removed worldwide in July. Despite this decline, the United States remains a dominant player, representing 82.6% of the global Bitcoin ATM network.
The Future of Bitcoin ATMs in California
As California takes proactive steps to regulate Bitcoin ATMs and ensure compliance with state laws, the crypto community will be closely monitoring the impact of these measures. Stay informed on the evolving landscape of crypto assets and the regulations shaping their use to navigate the digital financial ecosystem effectively.
