Bitcoin Depot to require ID for all crypto ATM transactions

Bitcoin Depot, the largest operator of crypto ATMs in the United States, has decided to mandate identity verification for all transactions.

According to Cointelegraph on the 24th (local time), Bitcoin Depot has been rolling out a “full transaction identity verification” program in phases across its U.S. ATM network since earlier this month. The company said the move will allow it to detect suspicious transactions in real time and block illicit activity such as account sharing, identity theft and account takeovers.

In a statement, Bitcoin Depot CEO Scott Buchanan said, “Continuous identity verification enables us to detect suspicious activity based on customers, locations and transaction amounts before a transaction is approved.” He added that “requiring identity authentication for every transaction is an additional step to strengthen security, protect customers and maintain the integrity of our services.”

Bitcoin Depot made identity verification mandatory for new users in October last year, but the latest measure expands the requirement to all transactions, including those by existing users.

The U.S. is the world’s largest market, accounting for about 78% of crypto ATMs globally. According to Coin ATM Radar, there are 31,360 Bitcoin ATMs operating in the U.S., and Bitcoin Depot owns 9,019 of them, ranking No. 1 by market share.

Still, crypto ATMs have drawn criticism for being abused as a means of receiving scam proceeds. According to the AARP, 17 states have introduced regulations such as daily transaction limits, mandatory scam warning disclosures and stricter licensing requirements for operators.

Bitcoin Depot is also facing lawsuits at the state level. Earlier this month, the Massachusetts Attorney General sued Bitcoin Depot, alleging it did not put sufficient fraud-prevention safeguards in place. In Maine, it paid a settlement of about $1.9 million in January this year, and a similar lawsuit is underway in Iowa.