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The Los Angeles Superior Court approved the introduction of a daily limit of $1,000 on withdrawals at crypto ATMs. The initiative was launched by the California Department of Financial Protection and Innovation (DFPI).
The court considered the introduction of restrictions to be effective precautionary measures that will help reduce the risks of cryptocurrency fraud and protect consumers interacting with crypto services. California authorities proposed to introduce a limit last fall. However, at the beginning of the year, the Alliance for Fair Access to Crypto ATMs filed a lawsuit, calling these restrictions excessive and beyond the scope of legislative powers.
DFPI Commissioner Clothilde Hewlett assured that despite the controversy that arose due to regulatory restrictions, the measures taken will protect users from fraudsters and limit the use of crypto ATMs for illegal purposes. These protective measures should not only strengthen consumer confidence in cryptocurrencies but also contribute to the long-term development of the cryptocurrency ecosystem in the state.
In October 2023, the Digital Financial Assets Act (DFAL) was signed into law in California. In addition to the daily withdrawal limit for ATMs, DFAL also imposes limits on the fees that device operators can charge, and they must fully disclose this information to customers. All operators of crypto ATMs will be required to obtain a license by July 2025.
The court considered the introduction of restrictions to be effective precautionary measures that will help reduce the risks of cryptocurrency fraud and protect consumers interacting with crypto services. California authorities proposed to introduce a limit last fall. However, at the beginning of the year, the Alliance for Fair Access to Crypto ATMs filed a lawsuit, calling these restrictions excessive and beyond the scope of legislative powers.
DFPI Commissioner Clothilde Hewlett assured that despite the controversy that arose due to regulatory restrictions, the measures taken will protect users from fraudsters and limit the use of crypto ATMs for illegal purposes. These protective measures should not only strengthen consumer confidence in cryptocurrencies but also contribute to the long-term development of the cryptocurrency ecosystem in the state.
In October 2023, the Digital Financial Assets Act (DFAL) was signed into law in California. In addition to the daily withdrawal limit for ATMs, DFAL also imposes limits on the fees that device operators can charge, and they must fully disclose this information to customers. All operators of crypto ATMs will be required to obtain a license by July 2025.
