States like California, Illinois, and North Dakota have established new regulations for crypto ATMs, imposing daily limits and state licensing to prevent potential fraud and protect users.
Cryptocurrency ATMs, innovative machines that allow people to buy and sell digital assets using cash or cards, are gaining popularity, but they're also under scrutiny from regulators in the United States.
States like North Dakota, California, and Illinois have begun implementing detailed regulations to better govern how these cryptocurrency ATMs operate, seeking to prevent the abuse and fraud that have begun to emerge.
New state and federal legislation aims to set daily transaction limits and require specific licenses to operate, in an attempt to strengthen a market that is growing rapidly but also poses considerable risks to users, especially those unfamiliar with crypto technology.
BUY CRYPTO HEREA look at the new state rules: controlled limits and licensing
North Dakota has been one of the pioneers in taking concrete measures regarding cryptocurrency ATMs. There, a limit of $2.000 per day per user for any operation, whether withdrawal or purchase on these devices.
Additionally, for new users, there is an additional limit that does not allow them to exceed $10.000 in a 14-day period. This approach aims to prevent inexperienced or unknown users from making suspicious transactions or falling for scams.
On the other hand, the state of California, concerned about the growing wave of fraud related to these ATMs, has imposed a stricter limit of only $1.000 a day, while Illinois and other states, such as Nebraska, are considering or have adopted similar measures, with ranges that vary. between $1.000 and $2.000 per user per day, seeking a balance between accessibility and control.
But it's not just about monetary limits. Regulations in these states also require crypto ATM operators to obtain specific state licenses, classifying them as money transmitters. This entails more rigorous oversight, with the obligation to submit detailed reports that include the exact locations of ATMs, the volume and type of transactions made, and clear information about those responsible for the operations.
With these measures, the states seek to provide transparency and prevent these ATMs from becoming tools for money laundering or massive fraud.
The driving force behind crypto-ATM regulations: protecting vulnerable users
all these restricciones that are being imposed in the American states have a very clear reason: protect users, especially those who are not native to the crypto world and, in particular, older adults.
Cryptocurrency transactions are irreversible, meaning that in the event of fraud or error, recovering the money may be impossible. The rapid and irreversible nature of cryptocurrency ATM transfers has opened the door to scams primarily targeting people with little experience with financial technology. These scams can range from outright fraud to elaborate scams that confuse or manipulate unsuspecting users.
Furthermore, these state measures are part of a broader movement in the United States to create a robust and unified regulatory framework in the crypto space. Importantly, the country seeks to position itself as a global leader in the cryptoasset market. Therefore, federal laws such as the bills GENIUS y CLARITY They seek to structure a comprehensive set of regulations that govern all aspects of the crypto ecosystem, including trading, stablecoin issuance, and other aspects.
Significant progress is expected at the federal level by September 2025, completing the work that several states have already begun piecemeal. This could harmonize requirements and reduce uncertainty for consumers and operators across the country.
BUY BITCOIN HEREWhat do users think? Between protection and excessive restriction
User reactions have been mixed. Some welcome these limits and licenses because they represent an extra layer of security against real risks of fraud. For them, these measures are not only necessary but urgent, as they contribute to creating an environment of trust and stability for the mass adoption of cryptocurrencies through physical means such as ATMs.
However, another segment of the crypto community believes the restrictions may be excessive and could limit the accessibility and ease of use that characterize crypto ATMs, negatively impacting their expansion and daily use.
The debate remains open, but there is consensus that a balance must be found between protection and operational freedom so as not to stifle innovation or put consumers at risk. The growing state and federal concern reflects the challenge regulators face in trying to control a disruptive and rapidly evolving technology without stifling its potential.
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