The largest Bitcoin ATM operator in the United States, Bitcoin Depot, has started introducing a new policy requiring customers to present identification for every transaction at its crypto kiosks. The move comes amid mounting pressure from regulators and lawmakers urging ATM operators to crack down on illicit activity.
In a statement Tuesday, Bitcoin Depot said the phased rollout began earlier this month across its US network. The company said the change is designed to flag suspicious activity in real time and prevent misuse such as account sharing, identity theft and account takeovers.
“Continuous verification allows us to detect suspicious activity based on customers, locations, or transaction amount before a transaction is approved,” CEO Scott Buchanan said.
The company had previously introduced ID requirements in October, though they applied only to new users. Buchanan added that extending identity checks to every transaction is an added step to bolster security, safeguard customers and preserve the integrity of its services.
The US remains the world’s largest market for Bitcoin ATMs. According to Coin ATM Radar, the country hosts 31,360 machines — about 78% of the global total. Bitcoin Depot leads the domestic market with 9,019 kiosks.
Bitcoin Depot faces mounting state scrutiny
Crypto ATMs have frequently been exploited by scammers seeking irreversible payments from unsuspecting victims, prompting regulators and lawmakers to tighten oversight of operators.
In February, the American Association of Retired Persons reported that 17 US states have enacted laws requiring crypto ATM operators to adopt consumer safeguards such as daily transaction caps, fraud warnings and licensing standards.
Bitcoin Depot has drawn particular attention from state authorities. Earlier this month, Andrea Campbell, the Attorney General of Massachusetts, filed a lawsuit alleging the company failed to put adequate anti-scam protections in place. She is seeking a court order that would prevent Bitcoin Depot from processing large transactions without additional user safeguards.
In January, Aaron Frey, the Attorney General of Maine, reached a $1.9 million settlement with Bitcoin Depot to compensate individuals who lost funds to scams through its ATMs.
Separately, last year Brenna Bird, Attorney General of Iowa, filed a lawsuit against both Bitcoin Depot and rival operator Coinflip, alleging that the companies failed to implement sufficient protections to prevent fraudulent activity.
