Payments

California seeks $1K bitcoin ATM limit to combat fraud

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October 25, 2023

California legislators recently proposed a bill that would cap withdrawals at crypto ATMs to $1,000 per day and limit fees to $5 or 15%. This bill aims to combat fraud, according to a report by Coin Telegraph.

Legislators proposed this bill after discovering some bitcoin ATMs with fees as high as 33% and limits up to $50,000 daily.

Scammers often tell victims to deposit money at cryptocurrency ATMs. This bill aims to address this issue by giving victims more time to realize they are being scammed with the lower transaction limits.

Monique Limon, Democratic state senator, said this bill "Is about ensuring that people who have been frauded in our communities don't continue to watch our state step aside."

However, some in the crypto ATM business said this bill would harm operators and does not address the root causes of fraud.

A crypto ATM scam made headlines when a Texas sheriff seized $15,000 from a bitcoin ATM after a victim claimed she was scammed into depositing the cash into the ATM. Following a lawsuit by the vendor, a Texas judge ruled that the sheriff acted improperly.