Bitcoin Depot is implementing a phased rollout requiring identification for all crypto ATM transactions. This move aims to detect suspicious activity in real-time and prevent misuse by bad actors.
"Continuous verification allows us to detect suspicious activity... before a transaction is approved," stated Bitcoin Depot CEO Scott Buchanan. Previously, ID was only required for new users. This stricter policy aims to bolster security and protect customers.
The US leads in Bitcoin ATMs, with Bitcoin Depot operating the largest network. This expansion of ID requirements comes as regulators and lawmakers increase pressure on crypto ATM operators to curb illicit activity.
Several US states have enacted laws requiring crypto ATM operators to implement protections like transaction limits and fraud warnings. Bitcoin Depot has faced legal action from state regulators, including lawsuits alleging insufficient safeguards against scams and a settlement over funds lost by users to fraudulent activities.