Bitcoin Depot has commenced a phased implementation of stricter identity verification procedures across its U.S. network of cryptocurrency ATMs. The initiative aims to enhance security measures and combat illicit activity associated with digital currency transactions. The company announced that the rollout began in early February and it entails requiring users to submit identification documents for each transaction. This shift reflects increased regulatory scrutiny and legislative pressure on crypto ATM operators to mitigate risks associated with fraud, money laundering, and scam activity.
Originally, Bitcoin Depot introduced ID checks in October, but these were limited to new users only. The current updates establish continuous verification for all users, regardless of their prior activity. The company states that real-time detection of suspicious transactions — such as unusual transaction amounts, suspicious locations, or frequent usage — will help preempt abuse and safeguard consumers. The CEO emphasized that repeated verification supports the company’s ongoing commitment to security, user protection, and operational integrity.
The United States dominates the global market for Bitcoin ATMs, with over 31,000 machines, representing approximately 78% of the worldwide total. Bitcoin Depot holds a leading position domestically, operating over 9,000 kiosks, which underscores its prominence within the sector. Nonetheless, the widespread distribution of these machines has also attracted regulatory oversight due to concerns surrounding scams and illegal activities.
Several states have responded with legislative measures requiring crypto ATM operators to adopt protective safeguards. Recent legal actions highlight ongoing regulatory challenges. For instance, Massachusetts’ Attorney General has filed suit against Bitcoin Depot, citing inadequate safeguards against scams and seeking to impose restrictions on large transactions. In Maine, the company settled a case for $1.9 million to reimburse victims of fraudulent schemes. Similar lawsuits in Iowa accuse Bitcoin Depot and other operators of lacking sufficient protections, reflecting a broader push toward stricter oversight in the sector.
