Bitcoin Depot to Require ID for Every Crypto ATM Transaction
Bitcoin Depot, the largest Bitcoin ATM operator in the United States, is moving to require identification for every transaction conducted at its U.S. crypto ATMs, expanding a policy first introduced in October for new users only. The company said Tuesday it began phasing in the requirement earlier in February to strengthen monitoring and reduce fraud and misuse.
According to CEO Scott Buchanan, continuous verification at the point of transaction is intended to flag potentially suspicious behavior tied to customers, locations, or transaction sizes before approval, helping to deter account sharing, identity theft, and account takeovers.
The United States remains the largest market for Bitcoin (BTC) ATMs, with 31,360 machines — about 78% of the global total — listed by Coin ATM Radar. Bitcoin Depot leads domestically with 9,019 kiosks.
State-level actions and litigation
Authorities have increased scrutiny of crypto ATMs amid fraud concerns, as scammers have used kiosks to receive funds through irreversible transactions. In February, the American Association of Retired Persons reported that 17 U.S. states have enacted laws requiring operator safeguards, including daily transaction caps, fraud warning signage, and licensing obligations.
In early February, Massachusetts Attorney General Andrea Campbell filed a lawsuit against Bitcoin Depot, alleging insufficient anti-fraud protections and seeking a court order to restrict the company from processing high-value transactions without additional user safeguards.
In January, Maine Attorney General Aaron Frey reached a $1.9 million settlement with Bitcoin Depot to reimburse users who lost funds to scams conducted through the company’s ATMs.
Last year, Iowa Attorney General Brenna Bird filed suit against Bitcoin Depot and competitor Coinflip, alleging inadequate protections to prevent scam-related transactions.
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