Key Points:
This FBI crypto warning, released in a public service announcement on April 25, emphasizes the importance of utilizing only registered Cryptocurrency Money Services Businesses (MSBs) that adhere to existing Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations.
According to U.S. federal law, cryptocurrency money-transmitting services must register as MSBs and comply with AML requirements. Failure to do so may lead to financial disruptions during law enforcement actions, especially if funds are mingled with illegally obtained money.
Individuals are urged to steer clear of services that flout AML requirements and neglect to collect KYC information. To ascertain a service’s legitimacy, users should verify its registration with the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN). However, registration alone does not imply government endorsement.
The FBI crypto warning underscores the risks associated with non-compliant services, warning of potential financial disruptions or loss of funds during enforcement efforts. While users are not directly targeted in enforcement actions, providers of illicit crypto services face serious consequences.
Recent FBI enforcement operations have targeted unregistered crypto services, often linked to charges of operating unlicensed money service businesses and money laundering. The agency advises against using crypto services that bypass KYC requirements, cautioning that apps listed on app stores may not adhere to federal compliance standards.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
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