What are Know Your Customer (KYC) requirements? If you’ve ever tried to buy Bitcoin or another type of crypto, you’ve likely been met with some sort of verification process.
Whether it’s a centralized exchange, online service, or through a Bitcoin ATM (BTM), KYC is an essential part of keeping users like you safe. That’s what we’ll be exploring today.
Read on to learn more about KYC and what it means for you.
KYC procedures serve as a cornerstone of financial regulation, requiring businesses to verify the identities of their customers to mitigate the risk of unlawful activities such as money laundering, terrorism financing, and fraud.
When it comes to BTMs, KYC usually requires BTM operators to at least collect the full name, phone number, and email address of their customers to be compliant with most KYC requirements.
These requirements are essential.
Why? Well, BTMs act as a gateway to the crypto ecosystem. When BTM operators abide by federal and state laws, including KYC requirements, they help build trust and legitimacy with both users and government officials.
Moreover, they help prevent misuse of BTMs for unlawful purposes.
Bitcoin ATM operators implement a spectrum of KYC requirements, ranging from basic to stringent levels of verification.
Basic KYC requirements are just that, basic.
Usually, this means you’ll need to provide a minimal amount of personal information:
This level of verification is suited for smaller purchase amounts. This makes it faster for users who just want to purchase a little while still keeping things safe.
Next is enhanced KYC.
This is a more comprehensive verification process, often including:
As you may have guessed, these requirements are necessary for higher transaction limits. They provide a higher level of security but may be more time-consuming and intrusive for users.
Some businesses offer tiered KYC.
That means they have different levels of KYC based on transaction amounts. Lower tiers have simpler requirements, while higher tiers require more information, just like basic vs. enhanced KYC. This allows for a balance between accessibility and compliance, helping operators cater to a wider range of user needs.
As we’ve learned, there is a direct relationship between how much you can purchase at a BTM and KYC requirements. More extensive KYC allows for higher transaction limits, while minimal KYC restricts transaction limits to mitigate risks.
Much like any other type of transaction, there are many different types of users.
Some just want to dip their toes into the Bitcoin (BTC) waters. For them, minimal KYC helps streamline the buying process. For others with a desire to make a significant purchase, those same requirements differ, helping keep both parties safe.
It might seem frustrating at first, but just remember these KYC requirements are for your own safety. From money laundering to fraud, KYC protects users and keeps those who may want to use BTC for illegal activities away from legitimate financial services like BTM operators.
These requirements are also evolving.
As laws and regulations change, BTM operators must stay informed and adjust limits accordingly. Additionally, flexibility in KYC requirements allows for easier adaptation to these new standards.
Let’s recap some of the benefits of KYC:
Here at Bitcoin Depot, we take KYC and BTC security very seriously.
We want every one of our users to feel safe using our BTMs, and we understand that convenience is one of the primary reasons users buy from us.
KYC is a necessary component of doing business.
Even so, we strive to find that perfect balance between privacy and safety. Additionally, we make sure that your personal information is always safely stored. No matter if you purchase from a BTM, BDCheckout™, or our buy online service, you can always count on a safe, streamlined, and secure transaction.
KYC requirements are integral to the operation and legitimacy of BTMs, shaping transaction limits and user experiences. While they are important for regulatory compliance purposes, KYC procedures also protect user privacy and security.
As the cryptocurrency ecosystem continues to evolve and regulatory frameworks mature, stakeholders must navigate these complexities collaboratively to ensure the continued growth and accessibility of BTMs while upholding regulatory standards and user trust.
By striking a balance between compliance and convenience, BTM operators like us can foster a thriving ecosystem that empowers users to participate in the digital economy securely and responsibly.
If you’re ready to get started on your own buying journey, Bitcoin Depot is here to help.
With over 8,400 BTM locations (as of February 2025) across the U.S., Canada, and Puerto Rico, you’re never too far away from a safe and secure cash purchase of BTC.
Get to your nearest BTM today.
*The information provided above is for informational purposes only. The inclusion of any particular 3rd party site does not imply an endorsement, sponsorship, or partnership between Bitcoin Depot and the 3rd parties listed above. While Bitcoin Depot endeavors to ensure the accuracy and relevance of the information provided, we do not guarantee the reliability of any 3rd party’s information.
Note: Updated on 2/19/25, original post date 2/29/24