Bitcoin ATMs To Face Bank-Level Scrutiny Under New California Law—Here’s Why

California has now joined in on the rise of crypto regulation globally. According to the latest report, the state’s regulator is setting up new regulatory frameworks aimed at Bitcoin ATMs in Chico.

According to data from Coin ATM Radar, the total number of Bitcoin ATMs in Chico currently stands at roughly 347, higher than other regions such as Spain, Hong Kong, and Poland.

State And Local Efforts Aligned Regulation

During a local government committee meeting on August 7, Andy Pickett, Chief Administrative Officer for Butte County, outlined the dual approach involving state legislation and local governance to manage the “proliferation” of Bitcoin ATMs effectively.

Recent investigations by Californian legislators have spotlighted the urgent need for regulation, revealing some Bitcoin ATMs charged up to a 33% transaction fee and allowed deposits as high as $50,000.

In response, new state legislation now caps daily deposits at $1,000 and requires operators to provide receipts and disclose their identities to users.

Additionally, California took a significant step by passing a bill to be implemented in July 2025, treating Bitcoin ATMs more akin to traditional banking institutions.

This upcoming regulation mandates comprehensive operator transparency, including the public listing of assets and liabilities, mandatory auditing, and “stringent” reporting of any criminal convictions or bankruptcy by operators. The report particularly read:

Special licensing, business transparency including publicly listing assets & liabilities, auditing, finger printing, public reporting of convictions or bankruptcy, and employment history will all be required of all operators and store owners that have the machines.

Pickett further emphasized the necessity of local jurisdictions to adopt their ordinances to complement these state measures. He predicted that these combined efforts would significantly diminish fraud cases linked to Bitcoin ATMs without direct local government intervention.

California Stance On Crypto

It is worth noting that California has taken quite an embracing stance on crypto. Before the latest move to regulate Bitcoin ATMs, last year, the region proposed a bill in favor of Decentralized Autonomous Organizations (DAO), who cannot pay taxes, protect their members, comply with regulations, or defend themselves in court.

As reported by Bitcoinist, the bill allows “DAOs to overcome nearly all of the most pressing legal challenges they currently face.” Further highlighting California-friendly stance on crypto, the California Fair Political Practices Commission (FPPC) recently included crypto contributions for political campaigns.

Bitcoin (BTC) price chart on TradingView amid Bitcoin ATMs news

Featured image created with DALL-E, Chart from TradingView

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