California Sets Daily Withdrawal Limit For Crypto ATMs Of IDR 15 Million

JAKARTA - In an effort to protect consumers from the risk of fraud and abuse, the California High Court recently set a daily withdrawal limit of US$1,000 (Rp15,000,000) at crypto ATMs. This rule is regulated through the Digital Financial Assets Act (DFAL), which also requires crypto ATM operators to pocket official licenses and follow new cost limits and disclosures. This decision was taken following a lawsuit from the Alliance for Fair Access to the Crypto Asset Terminal which opposes the daily withdrawal limit.

The Los Angeles County court rejected the lawsuit and stated that this daily transaction restriction was a reasonable step to reduce the risk of fraud in crypto kiosks, or better known as Bitcoin ATMs. Quoted from Bitcoin.com News, Clothilde Hewlett, California Department of Financial Protection and Innovation (DFPI) Commissioner, welcomed this court's decision. The restrictions imposed, including daily limits of 1,000 US Dollars (Rp15,000,000), are designed to protect consumers from potential fraud and abuse," explained Hewlett. He also stressed that this rule will support the innovations responsible in the crypto sector without ignoring aspects of consumer protection.

This new rule not only targets consumers, but also demands compliance from crypto ATM operators. Starting July 2025, every crypto kiosk operator in California is required to have a license in accordance with DFAL provisions to run its business. This regulation is expected to strengthen the legal basis in managing digital assets in the state. With the increasing number of cryptocurrency users in the United States, especially in California, which is the center of technological innovation, such regulations are seen as important to regulate this fast-growing industry. The California court and financial authorities emphasize that this step is not only a matter of limiting, but also supports the development of financial technology in a more secure and responsible way.

The decision also received widespread attention from the crypto community, which hopes similar regulations can be implemented in other states to create stronger standards in the digital financial ecosystem. According to a report from CoinDesk, some members of the crypto community stated that this daily withdrawal limit could help reduce the risk of fraud and money laundering, despite concerns that these restrictions could hinder crypto adoption among new users.