Bitcoin Bancorp has begun installing its licensed Bitcoin ATMs in Southern California. The first machines are now set up in the greater Los Angeles area.
The company announced on Thursday that this is the next step in its national expansion plan after its earlier rollout in Texas.
The Las Vegas-based company called itself one of only three publicly traded Bitcoin ATM network owner-operators. Bitcoin Bancorp said it holds foundational patents related to Bitcoin ATM technology.
It noted that the new machines are licensed Bitcoin ATMs and aim to give everyday users a safer and more compliant way to access cryptocurrency.
A Bitcoin ATM is a machine placed in a retail location that allows users to buy, and sometimes sell, Bitcoin. For beginners, it looks like a simpler way to access BTC than signing up for a crypto exchange and learning how trading platforms work.
California becomes the next step after Texas
The company said California was the next obvious market after Texas.
In its 5 March update, Bitcoin Bancorp had said it had launched its first 50 ATM installations in Texas. With the new rollout in California, the company has now expanded into another major U.S. market.
The company mentioned that the state has over 39 million residents and ranks among the top U.S. markets for Bitcoin ATM installations.
It also positioned California alongside other major states like Texas, Florida, and New York, and pointed that Texas still leads in the total number of Bitcoin ATMs.
Eric Noveshen, a director at Bitcoin Bancorp, said California was the right next move after Texas because of its strong tech industry, large retail market, and growing demand for easier access to crypto.
“The opportunity arose to strategically add new markets following our Texas deployment. California represents a natural next step for our licensed Bitcoin ATMs—delivering secure, compliant on-ramps to Bitcoin while capitalizing on one of the largest economic markets in the United States,” Noveshen added.
Company ties growth plans to a larger ATM market
Bitcoin Bancorp also highlighted growth in the wider crypto ATM market. The company said the U.S. crypto ATM market was worth about $267.4 million last year and could expand much further by 2034.
It also pointed to the wider market, saying there are now more than 35,000 Bitcoin ATMs across the United States.
The company said the California rollout could help increase fee revenue, expand its business beyond Texas, and raise its profile in one of the country’s biggest retail and tech markets.
Bitcoin Bancorp said its machines will give users a secure and compliant way to access Bitcoin in everyday retail settings.
The company also said it is using patented technology that supports fraud prevention and regulatory compliance.
“The deployment leverages the Company’s patented technology for enhanced fraud prevention and regulatory compliance, positioning Bitcoin Bancorp as a trusted, licensed operator in a jurisdiction with rigorous oversight,” the company noted.
Bitcoin Bancorp stated that it is not licensed as a bank in the United States and does not offer custody or banking services. It added that its ATMs are run by licensed third-party operators in the areas where the machines are located.
“Bitcoin Bancorp is committed to advancing blockchain-enabled financial infrastructure through secure technology platforms, strategic retail partnerships, and responsible operating standards,” Bitcoin Bancorp said.
Crypto ATMs under scrutiny over rising fraud
Crypto ATMs are coming under more pressure in the United States. In Minnesota, lawmakers want stricter rules after fraud cases involving older users went up.
Officials say scammers often direct victims to these machines because the money can be sent fast and is usually very difficult to get back.
Similar concerns have also pushed Arizona to act. State officials introduced new rules for crypto ATM operators under the Cryptocurrency Kiosk License Fraud Prevention Act.
The measure would require refunds for scam victims who report fraud within 30 days and would also push operators to improve user safety checks.
Crypto ATM scams also became a bigger problem across the United States last year.
Blockchain security firm CertiK said reported losses rose 33 percent to about $333 million. Experts said one reason was the growing use of AI tools, including deepfakes, which are making scam messages and fake identities much more convincing.