Bitcoin Depot has begun requiring identification for every transaction at its crypto ATMs across the United States, tightening controls as regulators intensify scrutiny over scams and money laundering risks.
The company said it started phasing in the measure earlier this month to help detect suspicious activity in real time and curb misuse such as account sharing, identity theft and account takeover.
“Continuous verification allows us to detect suspicious activity based on customers, locations, or transaction amount before a transaction is approved,”
Said Bitcoin Depot chief executive, Scott Buchanan.
“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,”
He added.
The United States accounts for 31,360 Bitcoin ATMs, or roughly 78% of the global total according to Coin ATM Radar, with Bitcoin Depot operating 9,019 kiosks as the country’s largest provider.
The stricter requirements follow legal challenges from state authorities, including a lawsuit filed by Massachusetts Attorney General Andrea Campbell and a $1.9 million settlement reached with Maine Attorney General Aaron Frey, as lawmakers in at least 17 states have introduced new rules governing crypto ATM operators.
At the time of reporting, Bitcoin price was $65,090.51.