The city of Chico, located in California, is expecting support from both state legislation and local ordinances to improve the regulation of Bitcoin ATMs.
During a commission meeting on August 7, Butte County Chief Administrator Andy Pickett discussed ongoing efforts to better regulate Bitcoin ATMs.
Mitigating Bitcoin ATM Fraud
Pickett reported on recent state legislation aimed at curbing Bitcoin ATM fraud. An October 2023 investigation found that some crypto ATMs were charging a premium of as much as 33%, while some machines had deposit limits as high as $50,000. In response, a bill was passed limiting daily deposits to $1,000. Additionally, the law now requires receipts and disclosure of the names of operators for all crypto ATM transactions.
Pickett stated: “The biggest impact will come from a bill coming into effect in July 2025 that will regulate the use of Bitcoin ATMs and treat them more like banks.”
He also stressed the need for local regulation: “Each jurisdiction should adopt its own ordinance to regulate Bitcoin machines, although any ordinance will likely be subject to legal challenge.”
Large-scale crackdown on crypto ATM operators
According to Coin ATM Radar, Chico currently has 347 active crypto ATMs, which is significantly more than the number in major economies such as Hong Kong, Spain, Poland, and New Zealand. The United States has 82.6% of the global Bitcoin ATM network, with 31,649 machines. Canada follows with 7.7% (2,961 ATMs) and Australia comes in third with 3% (1,143 ATMs).
In California, there are 2,872 crypto ATMs across multiple jurisdictions. Notably, 660 crypto ATMs were removed from the global network in July, marking the first decline in the number of Bitcoin ATMs this year.
With these new regulations, Chico hopes to create a safer and more controlled environment for Bitcoin ATM users.
Source: https://newsbit.nl/strengere-regelgeving-voor-bitcoin-geldautomaten-in-chico-californie/
