Chico, California Implements Regulations for Bitcoin ATMs

The city of Chico, located in California, is set to enhance oversight of Bitcoin ATMs through a combination of state laws and local regulations. This initiative aims to curb fraud and promote transparency among users.

Local Government Initiatives

During a committee meeting on August 7, Andy Pickett, the Chief Administrative Officer of Butte County, discussed efforts to better regulate Bitcoin ATMs. State legislation has been introduced to mitigate fraud relating to these machines.

California’s Stricter Reporting Standards for Crypto ATMs

An investigation in October 2023 revealed that certain crypto ATMs in California charged fees as high as 33%, with some machines imposing withdrawal limits of up to $50,000. As a response, new legislation has been passed to cap daily deposits at $1,000. Moreover, it is now required for all crypto ATM transactions to include receipts and operational disclosures.

According to Pickett:

“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.”

He also emphasized the necessity for local ordinances to monitor Bitcoin ATMs, noting that each locality will likely face legal challenges when establishing regulations.

Potential Crackdown on Crypto ATM Operators

As reported by Coin ATM Radar, Chico currently has 347 active crypto ATMs, a figure that surpasses the total number of ATMs found in several major economies, including Hong Kong, Spain, Poland, and New Zealand.

The U.S. dominates the global landscape of Bitcoin ATMs, with 82.6% of the network comprising 31,649 machines, followed by Canada at 7.7% (2,961 ATMs) and Australia at 3% (1,143 ATMs). California alone is home to 2,872 crypto ATMs distributed across various jurisdictions.

In a notable trend, July saw the removal of 660 crypto ATMs from the global network, marking a decline in installations for the first time this year.