California has now joined the global rise of cryptocurrency regulation. According to the latest a reportThe state regulator is working to create new regulatory frameworks targeting Bitcoin ATMs in Chico.
according to Data According to Coin ATM Radar, the total number of Bitcoin ATMs in Czechoslovakia is currently around 347, which is higher than other regions such as Spain, Hong Kong and Poland.
Organizing government and local efforts
During the August 7 Local Government Commission meeting, Butte County Chief Administrative Officer Andy Pickett explained the dual approach that includes: Government and local governance legislation to effectively manage the “proliferation” of Bitcoin ATMs.
Recent investigations by California lawmakers have highlighted the urgent need for regulation, revealing that some Bitcoin ATMs charge transaction fees of up to 33% and allow deposits of up to $50,000.
In response, the state’s new legislation now caps daily deposits at $1,000, and requires operators to provide receipts and disclose their identities to users.
Additionally, California has taken an important step by passing a bill that will be implemented in July 2025, which treats Bitcoin ATMs more closely to traditional banking institutions.
This upcoming regulation imposes comprehensive transparency on operators, including public disclosure of assets and liabilities, mandatory audits, and “rigorous” reporting of any criminal convictions or bankruptcies by operators. In particular, the report states:
Special licenses and business transparency including publicly listing assets and liabilities, audits, fingerprinting, public reporting of convictions or bankruptcies and employment history will be required of all operators and shop owners with the machines.
Beckett also stressed the need for local authorities to adopt their own laws to complement these government measures. He expected that these The combined efforts would significantly reduce the incidence of fraud associated with Bitcoin ATMs without Direct intervention of local government.
California’s Stance on Cryptocurrencies
It’s worth noting that California has taken a tolerant stance toward cryptocurrencies. Prior to the recent move to regulate Bitcoin ATMs, last year, the state proposed a bill in favor of decentralized autonomous organizations (DAOs), which cannot pay taxes, protect their members, comply with regulations, or defend themselves in court.
1/ Decentralized autonomous organizations still face a number of major legal challenges. They cannot pay taxes, protect their members, comply with regulations, or defend themselves in court.
California’s new DAO bill could change all that. https://t.co/lyJlKAkPyo pic.twitter.com/pTEMMEYHOx
— Miles Jennings (@milesjennings) April 24, 2023
As Bitcoinist noted, the bill would allow “decentralized autonomous organizations to overcome all of the most pressing legal challenges they currently face.” Further highlighting California’s pro-crypto stance, the California Fair Political Practices Commission (FPPC) recently mandated crypto contributions to political campaigns.
Featured image created using DALL-E, chart from TradingView