California could limit withdrawals at crypto ATMs to a thousand dollars a day
A new bill in California could establish limits on withdrawals from crypto ATMs, bringing them to USD 1,000 per day
California cryptocurrency legislation has a new bill on its hands that could limit crypto ATM withdrawals to $1,000 a day.
The legislators’ project, called Digital Financial Asset Transaction Kiosks, points to a “withdrawal from cryptocurrency ATMs of USD 1,000 a day due to the increase in scams. Additionally, starting in 2025, the law would limit traders’ commissions to $5 or 15% of the amount (whichever is greater). The bill, if approved, would go into effect on January 1, 2024.”
The decision regarding these limits is related to a specific fact regarding the charging of high commissions for the use of crypto ATMs.
It is known that the bill was introduced after some members of the legislature visited “a cryptocurrency ATM in Sacramento and found price increases of up to 33 % in some cryptocurrency assets compared to their prices on cryptocurrency exchanges.” It is estimated that, on average, these vending machines charge commissions of between 12 % and 25 %.
Another finding by government officials was that there were crypto ATMs that had a limit of up to USD 50,000. From this situation, they estimated the need to regulate such high prices and withdrawal limits.
The owners of the companies that make these crypto ATMs available to the public indicated their dissatisfaction with the bill, arguing that regulators have not taken into account the possible losses for small operators who must rent such equipment. Additionally, they do not address the issue of customer scams.
However, Democratic Sen. Monique Limon, who co-authored the proposed legislation, noted that the “new bill seeks to ensure that people who have been defrauded in our communities do not continue to watch our state fall away” when real problems are occurring.
It is important to highlight that the project stipulates that cryptocurrency companies must obtain a license from the California Department of Financial Protection and Innovation before July 2025.
M.Pino
Source: cointelegraph
(Reference image source: GENERAL BYTES, Unsplash)
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