Bitcoin Depot, the leading operator of Bitcoin ATMs in the United States, has initiated a new policy requiring customers to provide identification for every transaction. This move aims to enhance security and address concerns from regulators about illicit activities associated with cryptocurrency kiosks.
Beginning in February, the company expanded its ID verification process, which was previously only mandatory for new users since October. CEO Scott Buchanan emphasized that this continuous verification system will help identify suspicious transactions based on various factors such as customer behavior and transaction amounts.
The US hosts 31,360 Bitcoin ATMs, representing 78% of the global total, with Bitcoin Depot operating 9,019 of these machines. However, the company is facing increasing scrutiny from state regulators, including a lawsuit filed by Massachusetts Attorney General Andrea Campbell alleging inadequate safeguards against scams.
In January, a $1.9 million settlement was reached between Bitcoin Depot and Maine's Attorney General, aimed at compensating victims of scams involving the kiosks. As regulatory pressure mounts, 17 states have enacted laws requiring crypto ATM operators to implement protective measures, including daily transaction limits and licensing requirements.