Bitcoin ATM scams are on the rise, with scammers exploiting these machines to deceive unsuspecting victims into sending cryptocurrency.
In a recent incident reported by The Los Angeles Times, a resident of San Jose fell victim to a scam. He sent $15,000 through a Bitcoin ATM, believing he was assisting his son in a fictitious legal situation.
To address this trend, California plans to limit cryptocurrency ATM transactions to $1,000 per day per person starting in January. The law will also impose a fee cap of $5 or 15% (whichever is higher) on operators beginning in 2025.
The goal is to safeguard people from scams and prevent large cash sums from being used for crypto purchases. Regulators argue that these limits give individuals more time to identify fraudulent schemes.
However, crypto ATM operators are concerned that excessive regulations could harm their industry. They suggest enhanced ID requirements and suspicious activity monitoring as alternatives. Balancing consumer protection and innovation remains the key challenge in this evolving landscape.