FBI Warns Against Unregistered Crypto Services for US Citizens
On April 25, the FBI cautioned US citizens against utilizing unregistered cryptocurrency services for asset transmission.
The advisory emphasized the importance of avoiding crypto money transmitting services lacking registration as Money Services Businesses (MSBs) under US federal law.
Users were urged to steer clear of services failing to adhere to anti-money laundering (AML) requirements and not collecting know-your-customer (KYC) information. It was recommended that users verify if a service is registered as an MSB with the US Treasury’s Financial Crimes Enforcement Network (FinCEN). However, registration alone does not imply government endorsement, as clarified in the notice.
Additionally, the notice highlighted that third-party listings do not equate to government approval. Users were cautioned against assuming a service’s legality solely based on its presence on an app store.
READ MORE: Europe Approves New Crypto Regulations to Combat Money Laundering
The advisory underscored potential risks for users, including financial disruptions or loss of funds during enforcement actions by authorities. Notably, the notice did not indicate imminent fines or penalties for users nor direct targeting as part of enforcement efforts.
The FBI cited recent enforcement operations against unregistered crypto services, including actions against the Samourai Wallet on April 24. The founders were arrested and charged with operating an unlicensed money-transmitting business due to alleged money laundering activities facilitated by the wallet’s coin-mixing features.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
