California has introduced new state-level legislation aimed at regulating Bitcoin ATM operations, set to take effect in July 2025. This move is intended to enhance transparency and prevent fraud within the rapidly growing sector of cryptocurrency transactions.
Key elements of the legislation include:
1. Deposit Limitations: Daily deposits at Bitcoin ATMs will be capped at $1,000, a measure designed to prevent large-scale fraudulent activities and minimize potential financial losses.
2. Operational Transparency: Bitcoin ATM operators will be required to disclose their assets and liabilities, undergo regular audits, and provide detailed employment histories. This will increase accountability and ensure operators are financially stable and in compliance with industry standards.
3. Licensing and Compliance: Operators will need to obtain special licenses, adhere to rigorous standards including fingerprinting, and publicly report any convictions or bankruptcies. These steps are aimed at enhancing consumer trust and mitigating fraudulent activities.
4. Local Jurisdiction Ordinances: While the state legislation is comprehensive, each local jurisdiction in California will still need to pass its own ordinances to regulate Bitcoin ATMs. However, it is expected that the state regulations will address most concerns without requiring significant additional local action.
This legislation, known as California’s AB39 bill, reflects a broader trend toward treating Bitcoin ATMs more like traditional financial institutions, ensuring robust oversight and security in this growing sector.
Source: cryptodaily.co.uk
