TLDR
- Bitcoin Depot began mandatory ID checks for all transactions in February.
- The rule applies to every crypto ATM across its US network.
- The move follows pressure from state regulators over fraud risks.
- The company stock has fallen about 80 percent in six months.
Bitcoin Depot now requires identity verification for every transaction at its crypto ATMs across the United States. The company said the policy began rolling out in February and will cover all kiosks nationwide.
The decision comes as regulators increase oversight of crypto ATMs. Authorities have raised concerns about fraud and illegal transactions linked to cash-to-crypto services.
Expanded Verification Across US Network
Bitcoin Depot said the new rule extends verification beyond initial account registration. Customers must now complete identity checks for each transaction.
The company operates thousands of kiosks in retail locations across North America. These machines allow users to convert cash into Bitcoin quickly.
Chief Executive Officer Scott Buchanan said the policy adds another layer of protection. He stated that ongoing checks help detect unusual activity before transactions are approved.
“Continuous verification allows us to detect suspicious activity based on customers, locations, or transaction amount before a transaction is approved,” Buchanan said.
He added that requiring verification at every transaction strengthens security measures. The company aims to protect customers while maintaining service standards.
Regulatory Pressure and Fraud Concerns
State authorities have increased scrutiny of crypto kiosks in recent months. Lawmakers and prosecutors have cited risks tied to money laundering and scam-related transfers.
Reports have shown that some fraud schemes used anonymous cash-to-crypto conversions. Victims were often directed to deposit cash into crypto ATMs.
Regulators have called for stricter identity requirements across the industry. As a result, several operators have reviewed their compliance policies.
Bitcoin Depot stated that it has long focused on regulatory standards. The company said the updated policy reflects evolving legal expectations in multiple states.
The firm did not specify additional technical changes to its kiosks. However, it confirmed that verification now applies to each purchase.
Market Performance and Public Listing
Bitcoin Depot became the first US crypto ATM operator to list publicly in July 2023. The company debuted on the Nasdaq exchange. Since then, its stock price has declined sharply. Shares have fallen about 80 percent over the past six months.
The company did not link the new verification policy directly to its stock performance. However, the compliance update comes during a challenging market period.
Crypto ATMs remain a small but visible part of the digital asset market. They offer access to Bitcoin for users who prefer cash transactions. Industry observers note that regulatory expectations continue to evolve. Operators face increased compliance costs and reporting duties.
Bitcoin Depot said the expanded identity checks are designed to address these concerns. The company stated that it will continue monitoring regulatory developments.
The rollout began in February and is expected to cover all US locations. Customers using Bitcoin Depot kiosks must now verify their identity for each transaction.
The company maintains that the measure supports fraud prevention efforts. It also aims to align operations with current state requirements.
With the policy in place, Bitcoin Depot joins other financial service providers that require repeated customer verification. The company said it remains committed to operating within existing laws while offering access to digital assets.
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