Bitcoin Depot, a major operator of crypto ATMs across North America, is rolling out a new identity verification policy for all transactions at its kiosks in efforts to combat fraud and respond to regulatory pressure from state prosecutors, according to a Tuesday announcement.
The Atlanta-based company said the policy began rolling out in February and will apply across its US network, extending verification requirements beyond initial account setup to every subsequent purchase.
Bitcoin Depot has long placed a strong focus on regulatory standards and protecting users, CEO Scott Buchanan said in a statement. He noted that ongoing identity checks help detect unusual activity in advance, and the expanded verification requirement adds another layer of security designed to safeguard customers and uphold the integrity of the platform’s services.
“Continuous verification allows us to detect suspicious activity based on customers, locations, or transaction amount before a transaction is approved,” Buchanan stated. “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.”
The compliance shift follows a steep decline in the company’s stock, which has fallen roughly 80% over the past six months.
Bitcoin Depot became the first US crypto ATM operator to list publicly when it debuted on Nasdaq in July 2023. Its kiosks enable users to convert cash into Bitcoin at retail locations.
The move comes as state authorities intensify scrutiny of crypto kiosks over concerns about money laundering and scam-related transactions.
Reports of fraud schemes exploiting anonymous cash-to-crypto conversions have prompted lawmakers and prosecutors to push for stricter identity verification standards across the industry.