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Chico, California, looks to state and local regulations to oversee Bitcoin ATMs, aiming to limit fraud and ensure transparency.
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The city of Chico in California anticipates the combined support from state-level legislation and local ordinances to better regulate the Bitcoin teller machines or ATMs.
During a local government committee discussion held on Aug. 7, Andy Pickett, the chief administrative officer at the County of Butte, spoke about the ongoing efforts toward regulating Bitcoin (BTC) ATMs.
Pickett reported on recent state-level legislation to limit fraud cases related to Bitcoin ATMs.
California strengthens reporting requirements for crypto ATMs
A Californian legislative investigation from October 2023 found some crypto ATMs charging a premium as high as 33%, while a few ATMs had limits of up to $50,000. As a result, a bill was passed to limit deposits to $1,000 per day. Additionally, California mandates receipts and disclosure of operator names for all crypto ATM transfers.
Check out Cointelegraph’s beginner’s guide to learn more about Bitcoin teller machines.
Pickett added:
“The bigger impact is a bill that will take effect in July 2025, which will regulate the use of Bitcoin ATMs treating them more like a bank.”
Pickett further highlighted the need for regulating Bitcoin ATMs locally. He said that “each jurisdiction would need to pass their own ordinance to regulate the Bitcoin machines, and any ordinance would likely be challenged in court.”
Anticipating a large-scale crackdown on crypto ATM operators
According to Coin ATM Radar, the City of Chico currently has 347 active crypto ATMs, which is significantly more than the total ATMs in major economies, including Hong Kong, Spain, Poland and New Zealand, among others.
Related: US shutdowns lead to global decline in Bitcoin ATMs
The United States accounts for 82.6% of the global Bitcoin ATM network, with 31,649 machines. Canada follows with 7.7% (2,961 ATMs), and Australia ranks third with 3% (1,143 ATMs).
As shown above, California is home to 2,872 crypto ATMs spread across multiple jurisdictions.
In July, 660 crypto ATMs were removed from the global network, marking the first decline in Bitcoin ATM installations this year.
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This article first appeared at Cointelegraph.com News
