The US Federal Bureau of Investigation (FBI) has warned against crypto services that are not registered with Money Services Businesses (MSB). In this regard, the FBI recommended that users use the FinCEN tool to verify cryptocurrency service compliance. Noncompliance could lead to loss of funds in the course of FBI actions, it said.
FBI’s cryptocurrency warning: Legal and financial risks
The Federal Bureau of Investigation (FBI) has issued a statement warning the public to avoid using cryptocurrency money transfer services that are not registered with the Financial Crimes Enforcement Network (FinCEN) in the United States as Money Services Businesses (MSBs). This warning highlights the legal and financial risks associated with the use of non-compliant platforms, particularly those that do not comply with anti-money laundering (AML) standards and Know Your Customer (KYC) rules.
In its statement, the FBI emphasized the importance of confirming the registration status of the cryptocurrency service provider. They stated that those using unregistered services would cause major disruptions in law enforcement actions against such platforms. People who use such services are at risk of not being able to access their funds if the services are shut down as a result of illegal activities. The FBI also introduced a tool developed by Finnish CEN. This tool helps understand whether the crypto business is registered as an MSB or not.
Events behind the alert
cryptokoin.comAs you follow from , crypto scams continue to increase. The latest law enforcement moves have focused on unlicensed cryptocurrency transmission services. It also caused financial problems for clients whose assets were pooled with illicit funds. This follows a specific case where the FBI, in collaboration with Tether, recovered 1.4 million USDT from elder abusers. This case involved fake customer support ads that tricked victims into transferring their money to protect it. However, the victims later lost their money.
Recommendations for safe cryptocurrency services
The FBI has informed the public to stay away from cryptocurrency services that do not collect required KYC information such as customer names, addresses and dates of birth. Collection of such data is necessary to comply with AML rules and protect the security of user transactions. Additionally, the FBI stated that their presence in the official app store does not imply legal compliance. Therefore, he recommended that users check their compliance with federal regulations. In this regard, he warned against using mobile applications for crypto transactions.
Verification tools and resources
To assist the public, the FBI recommended using FinCEN’s records checker to verify that any crypto transaction service complies with federal law. Compliant companies listed in the FinCEN database include Coinbase and Kraken (Payward Financial Inc). This tool serves as a source of information for users to determine the legality and compliance of platforms. This minimizes the chances of falling prey to unregulated entities.
To be informed about the latest developments, follow us twitter‘in, Facebookin and InstagramFollow on and Telegram And YouTube Join our channel!