Bitcoin Depot, the largest Bitcoin ATM operator in the United States, has started requiring users to verify their identity for every transaction at its kiosks.
The company said Tuesday that the rollout began earlier this month across its US network. The move aims to detect suspicious activity in real time and reduce misuse, including account sharing, identity theft and account takeovers.
CEO Scott Buchanan said continuous verification allows the company to flag unusual activity based on customer behavior, location, or transaction size before approving a transaction.
Bitcoin Depot first introduced ID requirements in October, but only for new users. The new policy extends identity verification to every transaction, which the company says will strengthen security and protect customers.
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The United States continues to hold the title of biggest Bitcoin ATM market in the world. The United States contains more than 31,360 Bitcoin ATMs which constitute approximately 78 percent of all Bitcoin ATMs worldwide according to Coin ATM Radar data. Bitcoin Depot operates 9,019 kiosks nationwide which makes it the leading company in the market.
Regulatory pressure and state lawsuits
Crypto ATMs have been increasingly linked to scams, as transactions are irreversible and kiosks are widely accessible. This has prompted lawmakers and regulators to tighten oversight.
The American Association of Retired Persons reported in February that 17 US states have passed laws requiring crypto ATM operators to introduce safeguards such as daily transaction limits, fraud warnings and licensing requirements.
Bitcoin Depot currently faces legal difficulties. The company faces a lawsuit from Andrea Campbell, who claims they failed to implement sufficient security measures against scams. She wants the court to step in and stop big transactions unless they add better security.
The new ID requirement probably exists because regulators now require cryptocurrency ATM operators to enhance their security measures while improving their compliance with regulations.
Bitcoin Depot has also faced legal action at the state level. On October 1, 2021, Andrea Campbell filed a lawsuit against the company because she alleged that they did not establish proper security measures to protect against scams. The complaint seeks a court order to block large transactions unless additional safeguards are in place.
