The Federal Bureau of Investigation in the United States has cautioned Americans about the risks associated with using unregistered cryptocurrency money transmission services.
Through a public service announcement published on the FBI’s Internet Crime Complaint Center (IC3), the organization asked American citizens to avoid crypto services from firms that are not registered as Money Services Businesses (MSBs) under federal law and do not follow anti-money laundering rules.
FBI Alert on Cryptocurrency Money Services Businesses
The FBI warns Americans against using cryptocurrency money transmitting services that are not registered as Money Services Businesses (MSB) according to United States federal law and do not adhere to anti-money laundering… pic.twitter.com/vNXsTUyA2t
— BitKE (@BitcoinKE) April 26, 2024
“A few simple steps can prevent unintentional use of non-compliant services,” the FBI wrote in the release.
“For example, avoid cryptocurrency money transmitting services that do not collect know your customer (KYC) information from customers when required.”
KYC information commonly includes name, date of birth and address among other details.
“The FBI has recently conducted law enforcement operations against cryptocurrency services which were not licensed in accordance with federal law,” the FBI statement reads.
“People who use unlicensed cryptocurrency money transmitting services may encounter financial disruptions during law enforcement actions, especially if their cryptocurrency is intermingled with funds obtained through illegal means.”
The FBI cautioned individuals against making use of cryptocurrency services that do not request Know Your Customer (KYC) information, such as name or address, prior to allowing cryptocurrency transactions. Additionally, it emphasized that apps available in app stores might not always adhere to federal compliance standards or support legitimate services.
“Cryptocurrency money transmitting services that purposely break the law or knowingly facilitate illegal transactions will be investigated by law enforcement,” the FBI release adds.
“Using a service that does not comply with its legal obligations may put you at risk of losing access to funds after law enforcement operations target those businesses.”
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