Bitcoin Depot, the largest Bitcoin ATM operator in the United States, has begun phasing in a requirement for users to provide identification for every transaction at its crypto ATMs. The rollout started earlier in February across the company's U.S. network, marking a significant policy shift aimed at detecting suspicious activity in real time and preventing misuse such as account sharing, identity theft, and account takeover.
CEO Scott Buchanan stated, "Continuous verification allows us to detect suspicious activity based on customers, locations, or transaction amount before a transaction is approved." While Bitcoin Depot implemented ID requirements for all new users in October 2025, this new mandate extends verification to every transaction for all users. Buchanan emphasized this is "an additional step to strengthen security, protect customers, and maintain the integrity of our services."
The move comes amid increasing regulatory pressure and state-level lawsuits. In February 2026, the American Association of Retired Persons reported that 17 U.S. states have passed laws requiring crypto ATM operators to implement protections including daily transaction limits, fraud warnings, and licensing requirements.
Bitcoin Depot has faced direct legal action from multiple state attorneys general. Massachusetts Attorney General Andrea Campbell sued the company earlier in February 2026, alleging insufficient safeguards to prevent scams and seeking a court order to bar large transactions without additional user protections. In January 2026, Maine Attorney General Aaron Frey reached a $1.9 million settlement with Bitcoin Depot to reimburse scam victims. Iowa Attorney General Brenna Bird also launched a lawsuit against Bitcoin Depot and rival Coinflip in 2025.
The U.S. is the global hub for Bitcoin ATMs, with 31,360 machines accounting for 78% of the worldwide total. Bitcoin Depot operates 9,019 kiosks in the country, making it the market leader. The company's policy change affects thousands of terminals across North America and represents a major adaptation to Anti-Money Laundering (AML) and Know Your Customer (KYC) standards.
Financial compliance experts note this shift was inevitable, with one analyst stating, "Universal ID verification at Bitcoin ATMs was a question of 'when,' not 'if.'" While it may deter users seeking absolute anonymity, it could increase trust and volume from mainstream, first-time investors. The implementation requires significant operational changes, including real-time ID validation, enhanced data security with bank-level encryption, and user education.
