Chico, California, relies on state and local regulations to regulate Bitcoin ATMs to limit fraud and transparency.
The city of Chico, California, believes that state-level legislation and local rules will work together to regulate Bitcoin teller machines or ATMs properly.
Andy Pickett, the chief administrative officer at the County of Butte, addressed the ongoing attempts to regulate Bitcoin ATMs during a local government committee discussion on August 7.
Moreover, Pickett reported on recent state-level legislation that aims to restrict the number of fraud cases associated with Bitcoin ATMs.
California Enhances Crypto ATM Reporting Requirements
A Californian legislative study dated October 2023 discovered that certain crypto ATMs charged a premium of up to 33%, while others had limits of up to $50,000.
This led to the passage of a bill that restricted the number of deposits to $1,000 per day.
Furthermore, California requires the disclosure of operator names and receipts for all crypto ATM transfers.
Pickett said:
“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.”
Additionally, Pickett emphasized the need for local regulation of Bitcoin ATMs.
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 a considerably higher number than the total number of ATMs in major economies such as Hong Kong, Spain, Poland, and New Zealand.
With 31,649 machines, the United States accounts for 82.6% of the global Bitcoin ATM network.
Canada follows with 7.7% (2,961 ATMs), while Australia is third with 3% (1,143 ATMs).
As shown above, California is home to 2,872 crypto ATMs spread across various jurisdictions.
The global network marked the first decline in Bitcoin ATM installations this year when 660 crypto ATMs were removed in July.
