Bitcoin Depot has begun a phased rollout that requires customers to provide identification for every transaction at its kiosks across the United States. The Atlanta-based company announced the change on Feb. 24, stating that the policy took effect earlier this month.
The firm described the measure as a compliance enhancement designed to strengthen safeguards against misuse. It marks the first time a major U.S. Bitcoin ATM operator has required per-transaction identity verification, according to the company.
The update extends beyond the company’s previous “First-Transaction ID Verification” policy, introduced in October, which applied only to new users. Under the new framework, returning customers must also verify their identity each time they conduct a transaction.
“Continuous verification allows us to detect suspicious activity based on customers, locations, or transaction amount before a transaction is approved,” CEO Scott Buchanan said in a statement. He added: “By requiring identity verification at every transaction, we are taking an additional step to strengthen security, protect customers, and maintain the integrity of our services.”
Regulatory pressure intensifies
The move follows mounting scrutiny from state regulators and law enforcement agencies over fraud tied to crypto ATMs. Scammers have used kiosks to collect funds from victims, often instructing them to convert cash into digital assets that are difficult to trace or reverse.
The FBI reported that Americans lost $333 million in 2025 to fraud related to crypto ATMs. The American Association of Retired Persons said in February that 17 states have enacted laws requiring protections such as daily transaction limits, fraud warnings, and licensing requirements for operators.
State-level enforcement actions have also targeted Bitcoin Depot. Earlier this month, Andrea Campbell filed a lawsuit alleging that the company failed to implement sufficient safeguards to prevent scams. The complaint seeks to bar Bitcoin Depot from processing transactions above $10,000 without additional fraud prevention steps, including structured questioning and a refund mechanism.
The lawsuit alleges that Bitcoin Depot “knowingly facilitated crypto scams, while removing safeguards against fraud and misleading investors in order to line their own pockets.”
In January, Maine Attorney General Aaron Frey announced a $1.9 million settlement with Bitcoin Depot to reimburse victims who lost money to scams through the company’s ATMs. Last year, Brenna Bird filed a separate lawsuit against Bitcoin Depot and rival Coinflip, alleging inadequate consumer protections.
An Iowa Supreme Court ruling later allowed Bitcoin Depot to retain certain funds deposited into its ATMs in scam-related cases, based on customer attestations that they owned the receiving wallet.
Market leadership under scrutiny
Bitcoin Depot operates 9,019 kiosks in the United States, according to data from Coin ATM Radar, making it the largest crypto ATM operator in the country. The United States hosts 31,360 Bitcoin ATMs, or 78% of the global total, based on the same data source.
The company says its kiosks enable customers to convert cash into Bitcoin, which can then be used for payments, transfers, remittances, or investments. Bitcoin Depot went public in July 2023 as the first U.S. Bitcoin ATM operator to list its shares.
Market pressures have weighed on the company. Shares fell 6.7% on Tuesday to $5.37, according to Yahoo Finance. Over the past six months, the stock has declined 80%.
Law enforcement actions have at times created tension in the field. In one case last year, authorities in Texas used power tools to break into a Bitcoin Depot ATM in an attempt to retrieve funds linked to a scam investigation. The company has said it works with law enforcement to help identify bad actors when possible.
Industry-wide response to fraud
Crypto ATMs have faced restrictions beyond litigation. Spokane, Washington, imposed a citywide ban on the machines last year. In North Dakota, lawmakers introduced a bill that would establish daily caps and mandatory fraud warnings. Nebraska adopted similar measures.
The compliance shift at Bitcoin Depot reflects an attempt to address those concerns through internal controls rather than legislative mandates. By applying identity verification to each transaction, the company aims to identify patterns that may not surface during initial onboarding.
The policy places Bitcoin Depot at the center of a broader debate over access and protection. Operators argue that kiosks expand financial access for cash users who lack traditional banking relationships. Regulators point to documented losses and vulnerable populations, especially elderly victims, as grounds for tighter oversight.
Bitcoin Depot’s new requirement represents a structural change in how crypto ATM transactions proceed in the United States. Whether it satisfies regulators and reduces fraud exposure will likely determine the next phase of enforcement and legislation in a sector that has drawn both rapid adoption and intense scrutiny.
Anastasiia G
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