A year ago, Governor Gavin Newsom signed two bills, Assembly Bill 39 and Senate Bill 401, that created the California Digital Financial Assets Law. SB 401 added Section 3902 to the Financial Code to prohibit an operator of a digital financial asset transaction kiosk (aka Bitcoin ATM) from accepting or dispensing more than $1,000 in a day from or to a customer via a digital financial asset transaction kiosk. Late last year, the Alliance for the Fair Access to Cryptocurrency Terminals challenged this daily limitation in an action filed in Los Angeles Superior Court. Recently, Judge Daniel S. Murphy sustained the Department of Financial Protection & Innovation's demurrer to the lawsuit.
DFPI Commissioner Clothilde Hewlett published a statement following the court's ruling:
The law’s common-sense restrictions, including a $1,000 daily limit at crypto kiosks, protect consumers from fraudulent transactions and limit the use of kiosks for illicit purposes. The Department will continue implementing this important legislation, which will strengthen responsible innovation in the state’s crypto industry and protect Californians.
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