Bitcoin Depot Will Require ID for 'Every Transaction' at ATMs Amid Growing Pressure
Decrypt
by André BeganskiFebruary 24, 2026
AI-Generated Deep Dive Summary
Bitcoin Depot is intensifying its efforts to combat fraud and illicit activity by requiring customers to provide personal IDs for every transaction at its ATMs. The move comes amid growing pressure from state prosecutors, including a lawsuit filed by the Massachusetts attorney general alleging that Bitcoin Depot knowingly facilitated scams targeting vulnerable populations, such as the elderly. By mandating identity verification at each use of its services, the company aims to prevent account sharing, identity theft, and fraudulent activities. This policy builds on earlier measures introduced in October 2023, which already required IDs during initial sign-ups.
The decision reflects Bitcoin Depot’s commitment to enhancing compliance and security, as highlighted by CEO Scott Buchanan, who emphasized the importance of catching suspicious patterns that might not emerge during the onboarding process. However, the company has faced significant backlash, including a 6.7% drop in its stock price earlier this week and an 80% decline over the past six months. This volatility underscores the challenges crypto ATM operators face as they navigate increasingly stringent regulations and legal scrutiny.
State authorities, such as those in Massachusetts and Iowa, have taken aim at Bitcoin Depot’s business practices, accusing the firm of failing to implement adequate safeguards against fraud. In one notable case, the Massachusetts attorney general sought court-ordered measures requiring Bitcoin Depot to limit transactions above $10,000 unless additional anti-fraud steps are taken. These actions highlight a broader trend of regulatory focus on crypto ATMs, with 14 states now imposing restrictions or outright bans on their operations.
The rise in scams linked to crypto ATMs has left both consumers and regulators concerned about the technology’s potential for misuse. Scammers often exploit the irreversible nature of cryptocurrency transactions to defraud victims, who are sometimes tricked into sending funds under false pretenses, such as “government payments” or tech support schemes. Bitcoin Depot has faced criticism over these issues, with some state courts ruling against its ability to recover funds lost through scams.
Despite these challenges, Bitcoin Depot remains a key player in the crypto ATM space, operating 8,800 machines across North America. The company’s focus on identity verification and fraud prevention represents an evolution in its approach to addressing these concerns. However, the ongoing legal battles and declining stock performance suggest that the road ahead for Bitcoin Depot—and other similar businesses—will be fraught with regulatory hurdles and public skepticism.
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Originally published on Decrypt on 2/24/2026