Crypto ATMs in California Face New Limits

California Bill Seeks to Limit Daily Withdrawals to $1,000 at Crypto ATMs in Effort to Combat Scams

California bill seeks to limit daily crypto ATM withdrawals to $1,000 to fight scams.

California legislators have proposed a new bill titled “Digital financial asset transaction kiosks.” Now, before you start yawning at the mention of bills and kiosks, let me clue you in on the exciting details. This bill seeks to regulate the booming crypto ATM industry and protect unsuspecting investors from scams and sky-high fees. It’s like training a wild bull in the rodeo – risky, but necessary.

The proposed legislation would set a cap on crypto ATM withdrawals at $1,000 per day. Think of it as a guardrail to keep you from going completely loco with your hard-earned cash. But wait, there’s more! Starting in 2025, the law would also limit the fees charged by these machines to either $5 or 15% (whichever is higher). It’s like getting a discount on your outrageous ATM fees while simultaneously having someone watch your back.

So, why all the fuss? Well, legislators paid a visit to a crypto ATM in Sacramento and discovered markups as high as 33%. To put it in perspective, that’s like someone charging you five times the price of a popcorn at the movies – a total ripoff! On average, crypto ATMs charge fees ranging from 12% to 25%. That’s like paying double for your avocado toast because someone decided it’s made with gold flakes.

But that’s not all! Some ATMs had withdrawal limits as high as $50,000. It’s as if the ATM was screaming, “Come rob me!” So, it’s no wonder that the government officials decided to step in and bring some sanity to the Wild West of crypto ATMs. After all, who needs an ATM that could potentially bankrupt you with a single swipe?

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Democratic state Senator Monique Limón, co-author of the proposed legislation, put it succinctly: “This bill is about ensuring that people who have been frauded in our communities don’t continue to watch our state step aside.” It’s time to put an end to the wild scams and exploitations happening in our midst.

But let’s not forget that there’s another provision in the bill. Digital asset businesses are required to obtain a license from the California Department of Financial Protection and Innovation by July 2025. So, it’s like getting a driver’s license for your crypto business. Just make sure you pass the test – no bribing the examiner!

Now, let’s talk about crypto ATMs. They were intended to be a convenient way for people to exchange cash for their favorite digital assets. But they’ve turned into a lucrative playground for scammers and fraudsters. It’s like going to a candy store with a bag full of counterfeit money – you might get away with it, but you’re bound to get caught eventually.

Residents in California have fallen victim to these scams, where the swindler convinces them to deposit cash into the nearby crypto ATMs for their choice of cryptocurrency. But fear not, dear investors! The low transaction limit proposed by the bill will give you ample time to realize if you’re being taken for a ride. It’s like having a radar detector that alerts you before you speed into a trap.

But of course, there are always two sides to a story. Crypto ATM businesses argue that the bill will harm the small operators who already struggle with high rent payments for their machines. They say the legislations miss the mark by focusing solely on technology instead of tackling the core issue of fraud. They warn of dire consequences for the industry, which would ultimately hurt consumers. It’s like trying to kill a mosquito with a sledgehammer – sure, you might get the bug, but you’ll also wreck your whole backyard.

So, buckle up, folks! The crypto ATM industry in California is about to undergo some major changes. But let’s hope that these regulations strike the right balance between protecting investors and supporting legitimate businesses. Together, we can clean up the wild west of crypto and make it a safer and more reliable frontier.

Now, tell me, have you ever had any interesting encounters with a crypto ATM? Share your stories in the comments below!

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