What Types Of Identification Do I Need To Use A BTM? – Bitcoin ATMs KYC/AML

When using a Bitcoin ATM, the identification required can vary based on transaction size and location. For smaller amounts, some Bitcoin ATMs might not require an ID, allowing you to buy crypto without KYC up to certain limits—typically around $500. 

However, larger transactions usually involve ID verification to comply with Bitcoin ATM AML/KYC regulations. This can range from scanning a government-issued ID, like a driver’s license or passport, to providing your Social Security Number (SSN) for higher amounts. 

Whether you’re looking to use non-KYC Bitcoin ATMs or wondering why Bitcoin ATMs require ID, this guide explains the varying levels of verification involved in buying crypto with or without KYC.

Key Takeaways

• Bitcoin ATMs require some form of pre-set identity verification as you carry out transactions.
• For small transactions, verification might just involve a phone number.
• However, larger transactions require more detailed identity checks, such as government-issued IDs or SSNs.

What Type Of Identification Do I Need To Use A Bitcoin ATM?

Bitcoin ATM providers use various identification methods to comply with AML and KYC regulations.

Here are the types of identification users may need to provide depending on the transaction.

1. Phone Number/SMS Verification

Image showing phone number/SMS verification

Phone numbers are the most basic and simplest forms of identity conformation that requires small transactions often.

Users will receive a code through an SMS that they need to enter as a way of confirming the transaction.

Bitcoin ATMs that need only a phone number typically have low transaction limits that ranges from $0 to around $500.

2. ID scan verification

For larger transactions, many Bitcoin ATMs require users to scan a government-issued ID, such as a driver’s license or passport.

This type of verification is common for higher transactions, mostly those exceeding $500, with some machines even going up to $3,000 or more for this.

By scanning an ID, the user’s identity can be verified against public records.

Hence, it is an easier way of tracing transactions if need be.

3. Social Security Number (SSN) verification

In some cases, especially for higher-value transactions, users may be asked to provide their Social Security Number (SSN).

The verification is especially true in jurisdictions with stringent AML/KYC requirements.

Notably, SSN verification may be needed for transactions worth over $3,000.

This allows user identity to be assured.

Some Bitcoin ATMs might need this information as a way of carrying out more background checks for their customers to ensure they are in compliance with federal regulations.

4. Phone Call to Verify Bitcoin Wallet Ownership

Bitcoin ATMs may sometimes require a user to verify their wallet ownership through a phone call.

It adds to the security to ensure the Bitcoin wallet receiving the funds is controlled by the person making the transaction.

This verification type is usually part of the KYC process for transactions of more than $1,000 to avoid fraud and theft.

5. Phone Call to Verify Source of Funds

For high-value transactions, Bitcoin ATM providers may require users to explain the sources of their funds.

It may involve a phone call or even supporting documentation.

Verification of the sources of funds prevents money laundering, which is a key focus of AML policies.

This will mostly apply to purchases of more than $10,000.

Users are required to submit the listed documentation proving the legitimacy of their income or assets.

6. Request for documentation proving a source of funds

In extreme cases, such as when transactions reach tens of thousands of dollars, BTMs may need detailed documents to prove the source of funds.

This could include bank statements, tax returns, or other official documents.

The strict verification is in line with international AML regulations that require financial institutions to prove that the funds are not tied to illicit activities.

Why Do KYC Policies Exist?

KYC policies have been put in place to combat illegal activities such as fraud, money laundering, and terrorist financing.

KYC policies allow providers to confirm someone’s identity to prevent misuse of cryptos in criminal activities.

KYC regulations also protect users by ensuring the security and legitimacy of their transactions.

Moreover, KYC compliance is a legal obligation for financial service providers in most countries, including cryptocurrency-related businesses like Bitcoin ATMs.

Why Do Bitcoin ATMs Require ID Or KYC?

The main reason Bitcoin ATMs need ID or KYC verification is to comply with local and international AML laws.

BTC and other cryptos are often scrutinized due to their perceived anonymity, which can be exploited for illicit activities.

To mitigate this risk, governments have implemented strict KYC requirements for businesses that deal in digital currency.

Bitcoin ATMs reduce the likelihood of illegal transactions by implementing KYC requirements while also maintaining transparency and accountability.

How Long Does Bitcoin ATMs Take To Verify Your Identity?

The time it takes for a Bitcoin ATM to verify your identity depends on the type of verification required.

For phone number or SMS verification, the process is nearly instantaneous and takes just a few seconds.

Scanning an ID can take slightly longer, usually about 2 to 5 minutes, depending on the machine and its software.

In cases where more thorough checks are needed, such as SSN verification or source of funds documentation,

the process may take longer—anywhere from a few minutes to several hours.

This depends on how quickly the user provides the required information.

Can I use a Bitcoin ATM Without an ID?

It is possible to use a Bitcoin ATM without ID, but these transactions are mostly subject to strict limits.

For instance, some Bitcoin ATMs allow small purchases of up to $500 without any form of ID verification.

However, as soon as the transaction exceeds this limit, users will likely be required to verify their identity through one or more of the methods outlined above.

Bitcoin ATMs that don’t require ID are rare, and when they exist, they often operate in jurisdictions with less stringent regulations.

Conclusion

Bitcoin ATMs require various levels of identity verification depending on the transaction size and local regulations.

They comply with AML/KYC laws, depending on the jurisdiction, to ensure the legitimacy of crypto transactions.

While you can use some Bitcoin ATMs without having to provide an ID or any other form of identification, you can only transact smaller amounts.