• The FBI warned Americans against using unregistered crypto money transmitting services that do not comply with federal laws and anti-money laundering rules.
• The FBI provided a FinCEN tool to allow users to look up if a company is registered as a Money Services Business.
• The FBI stated that using unlicensed crypto services may put users at risk of losing access to funds during law enforcement actions targeting those businesses.
The US Federal Bureau of Investigation (FBI) has warned Americans against using unregistered crypto money transmitting services.
Americans Should Avoid Unregistered Services
Americans should 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, according to a Thursday statement from the FBI’s Internet Crime Complaint Center (IC3).
“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.
Look Up Registration Status
The FBI also suggested users look up whether a business is registered as a Money Services Business using a tool from the US Financial Crimes Enforcement Network (FinCEN). When The Block used the tool, crypto firms such as Coinbase and Kraken (legally known as Payward Financial Inc) appeared.
Risks of Using Unlicensed Services
The FBI has recently conducted law enforcement operations against cryptocurrency services which were not licensed in accordance with federal law, according to the statement. “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 also warned.
The FBI also warned users against using crypto services that do not ask for KYC information such as name or address before letting you send or obtain cryptocurrency.
Non-Compliant Services Will Be Investigated
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.”
