TLDR
- ID verification now required for every Bitcoin ATM transaction
- Rollout began in February 2026 across US kiosks
- Company operates 9,019 crypto ATMs in the US
- Policy follows lawsuits and state regulatory scrutiny
Bitcoin Depot has begun requiring identification for every transaction at its crypto ATMs across the United States. The policy marks a shift in compliance standards for the industry’s largest operator. The Atlanta-based company said the phased rollout started in February 2026. The new rule applies to all users and extends beyond initial account setup.
Company Expands Identity Checks Across Network
Bitcoin Depot operates 9,019 kiosks in the United States. The country has 31,360 Bitcoin ATMs, according to Coin ATM Radar. The US accounts for about 78% of the global total. The company previously required ID verification for first-time users in October. The new policy mandates verification at every transaction.
The measure applies across its entire US kiosk network. Chief Executive Officer Scott Buchanan said the company aims to detect suspicious activity before approval. He stated, “Continuous verification allows us to detect suspicious activity based on customers, locations, or transaction amount before a transaction is approved.”
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.” Bitcoin Depot said the added verification layer is designed to prevent account sharing and identity theft. It also aims to reduce account takeover attempts.
Regulatory Pressure and Legal Challenges
The compliance update follows increased scrutiny from state regulators and lawmakers. Authorities have raised concerns about fraud linked to anonymous cash-to-crypto transactions. In February, the American Association of Retired Persons reported that 17 states passed laws targeting crypto ATM operators.
These laws require daily limits, fraud warnings, and licensing standards. Earlier this month, Massachusetts Attorney General Andrea Campbell filed a lawsuit against Bitcoin Depot. The lawsuit alleges the company failed to implement enough safeguards to prevent scams. Campbell is seeking a court order to restrict large transactions without added protections.
In January, Maine Attorney General Aaron Frey reached a $1.9 million settlement with Bitcoin Depot. The settlement aimed to reimburse people who lost funds in scams using the company’s kiosks. Iowa Attorney General Brenna Bird also filed a lawsuit last year against Bitcoin Depot and Coinflip. The case alleges both operators did not implement adequate anti-scam protections.
Market Context and Business Position
Bitcoin Depot became the first US crypto ATM operator to list publicly on Nasdaq in July 2023. The company trades under the ticker BTM. Its stock has fallen about 80% over the past six months. The company said its kiosks allow customers to convert cash into Bitcoin.
Users can then access digital payments, transfers, remittances, and investment services. Regulators have argued that crypto ATMs can be used in fraud schemes. Scammers often instruct victims to deposit cash into kiosks. Transactions are irreversible, which makes recovery difficult.
Bitcoin Depot said its updated verification system enables real-time monitoring. The company believes stricter identity checks can reduce misuse by bad actors. The firm stated that the rollout will continue in phases. It did not provide a timeline for full completion. The company maintains that compliance and consumer protection remain central to its operations.
