Coinspeaker Chico, California Prepares for New Bitcoin ATM Rules amid Statewide Efforts
The city of Chico in Butte County, California, is gearing up to align with upcoming state-level legislation and local ordinances aimed at Bitcoin ATMs. This initiative is part of a broader effort by the state to implement comprehensive crypto regulations set to take effect in 2025.
California is home to 2,872 crypto ATMs distributed across various jurisdictions, with the City of Chico accounting for 347 active machines. This number is higher than total ATMs in some big economies, like Hong Kong.
According to a report by an October 2023 California legislative investigation, some ATMs in the region were found to charge exorbitant fees, with premiums reaching as high as 33%. On the other hand, many Bitcoin ATMs allowed transactions up to $50,000.
During a recent local government committee meeting, Andy Pickett, the Chief Administrative Officer of Butte County, stated that such practices have raised alarms about potential fraud and consumer exploitation. He outlined the ongoing efforts to create a state-level regulation to mitigate these issues.
Strict Regulation for Bitcoin ATMs
It is important to note that in October 2023, California’s Governor Gavin Newsom signed the Digital Financial Assets Law, which also includes Bitcoin ATM regulation. This legislation imposes several strict rules, such as capping daily deposits at $1,000 in ATMs, mandatory receipt issuance, and the operator’s details. It is set to come into effect in July 2025.
This Bitcoin ATM legislation will impose strict regulations on Bitcoin ATMs, treating them more like traditional banking institutions. The new rules will mandate operators and store owners to obtain special registration and public listing of assets and liabilities. Additionally, they will be required to publicly report convictions or bankruptcies and conduct regular audits.
Pickett noted that while state legislation lays the groundwork, local ordinances will still play a critical role in ensuring effective implementation. Each jurisdiction would need to craft and enforce its own rules to regulate Bitcoin ATMs.
A Decline in Global ATM Machines
According to the data by CryptoATMRadar, the United States alone has 31,649 Bitcoin ATMs, marking 82.6% of the world’s machines. Canada and Australia follow, with 7.7% (2,961 ATMs) and 3% (1,143 ATMs) of the global share, respectively.
Interestingly, the number of active Bitcoin ATMs worldwide has been on the decline since May this year, a trend not seen since July 2023. In July alone, 660 crypto machines were removed from the global network, marking the first major drop in ATM installations this year. This decrease is attributed to several factors, including a drop in enthusiasm for cryptocurrencies amid a broader market downturn.
Bitcoin, the leading cryptocurrency, has seen its value fall more than 22% from its all-time high of $73,750, reached in March this year. This month has been particularly challenging, with prices dipping below $50,000. However, the market has shown some recovery today, with Bitcoin currently trading around $57,000.
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Chico, California Prepares for New Bitcoin ATM Rules amid Statewide Efforts
