Bitcoin Depot has implemented a new requirement on its crypto ATM network in the United States and now requires users to provide identification for every transaction.

According to the official announcement, the new policy has been in effect since the beginning of February in the hope of strengthening “guarantees against possible misuse.”

“By requiring identification for every transaction, the enhancement adds another layer of protection designed to help prevent account sharing, identity theft and account takeover attempts as the rollout continues,” the company said.

According to the company’s CEO, Scott Buchanan, using continuous verification will help detect suspicious activity based on “customers, locations or transaction amount.”

The mandate comes as Bitcoin Depot faces increased scrutiny from regulators. Earlier this month, Massachusetts Attorney General Andrea Campbell sued the company for failing to implement appropriate safeguards to prevent scams.

Bitcoin Depot was also targeted by Iowa Attorney General Brenna Bird last year for similar reasons.

According to data from Coin ATM Radar, Bitcoin Depot is the largest crypto ATM operator in the United States, with 9,019 kiosks in operation. It began implementing identification requirements in October, but the measure was limited to new users only.

Crypto ATMs face increased scrutiny

Reports from the FBI and other third-party agencies have warned that bad actors have continued to misuse crypto ATMs to commit fraud, impersonation scams, and other illicit transfers, often targeting elderly victims and pressuring them to convert money into digital assets that are difficult to trace or recover. As a result, US lawmakers have decided to step up surveillance.

Last year, the city of Spokane, Washington banned all crypto ATMs. Elsewhere, in North Dakota, a bill was introduced to implement daily transaction caps and mandatory fraud warnings. Nebraska has also taken similar steps.