California has joined the rise of cryptocurrency regulation around the world, according to the latest reportState regulator establishes fresh regulatory framework for Bitcoin ATMs in Chico.
According to data According to Coin ATM Radar, the total number of Bitcoin ATMs in Chico currently stands at around 347, which is higher than other regions such as Spain, Hong Kong, and Poland.
State and local actions harmonized regulations
During the Aug. 7 Local Government Commission meeting, Butte County Chief Administrative Officer Andy Pickett outlined a two-pronged approach that includes: state legislation and local governance to effectively manage the “proliferation” of Bitcoin ATMs.
Recent investigations by California lawmakers have exposed the urgent need for regulation, revealing that some Bitcoin ATMs were charging transaction fees of up to 33% and allowing deposits of up to $50,000.
In response, a fresh state law limits daily deposits to $1,000 and requires operators to issue receipts and disclose their identities to users.
Additionally, California took a significant step by passing a law that will go into effect in July 2025 treating Bitcoin ATMs more similarly to established banking institutions.
This upcoming regulation mandates comprehensive transparency for operators, including public disclosure of assets and liabilities, mandatory audits, and “rigorous” reporting of any criminal convictions or bankruptcies of operators. The report states in particular:
All operators and shop owners with these machines will be required to meet requirements for special licensing, business transparency, including public reporting of assets and liabilities, audits, fingerprinting, public reporting of convictions or bankruptcies, and employment history.
Pickett further emphasized the need for local jurisdictions to adopt their own ordinances to complement these state measures. He predicted that these collective efforts would significantly reduce the number of Bitcoin ATM fraud cases without direct intervention by local authorities.
California’s Position on Cryptocurrencies
It’s worth noting that California has taken a fairly favorable stance on cryptocurrencies. Before its latest move to regulate Bitcoin ATMs last year, the region proposed a bill to benefit decentralized autonomous organizations (DAOs), which can’t pay taxes, protect their members, comply with regulations, or defend themselves in court.
1/ DAOs continue to face a number of solemn legal challenges. They cannot pay taxes, protect their members, comply with regulations, or defend themselves in court.
A fresh DAO bill in California could change all that. https://t.co/lyJlKAkPyo photo:twitter.com/pTEMMEYHOx
— Miles Jennings (@milesjennings) April 24, 2023
As Bitcoinist reports, the bill allows “DAOs to overcome nearly all of the most pressing legal challenges they currently face.” Further underscoring California’s warm stance on cryptocurrencies, the California Fair Political Practices Commission (FPPC) recently included cryptocurrency contributions to political campaigns.
Featured image created with DALL-E, chart from TradingView
