In a bid to curb the rising tide of fraudulent activities, California lawmakers have introduced a measure termed “Digital Financial Asset Transaction Kiosks.” The measure advocates for a daily withdrawal limit of $1,000 from cryptocurrency ATMs. Furthermore, the bill proposes a cap on operators’ fees at $5 or 15%, whichever is greater, effective from the year 2025. If enacted, the implementation of these regulations is slated to commence on January 1, 2024.
The legislation came on the heels of a visit by legislative members to a cryptocurrency automated teller machine (ATM) in Sacramento. During the visit, they unearthed markups on certain cryptocurrencies that were as much as 33 percent higher than their values on cryptocurrency exchanges. A subsequent investigation by the legislators revealed that the fees levied by a cryptocurrency ATM oscillate between 12% and 25% on average.
Moreover, government authorities discovered ATMs with withdrawal limits soaring as high as $50,000,…