- According to federal law, Americans should not use cryptocurrency services from companies that are not registered as Money Services Businesses (MSBs), the FBI stated on Thursday.
- Additionally, the FBI provided consumers with access to an official FinCEN tool to check if a corporation is registered as an MSB.
Americans have been cautioned by the US Federal Bureau of Investigation not to use unregistered cryptocurrency money transmission businesses.
The FBI’s Internet Crime Complaint Center (IC3) released a statement on Thursday advising Americans to steer clear of crypto services from companies that are not registered as Money Services Businesses (MSBs) under federal law and do not adhere to anti-money laundering regulations.
The FBI stated in the release that inadvertent usage of non-compliant services can be avoided with a few easy actions. For instance, stay away from Bitcoin money transmission services that do not obtain, when needed, know-your-customer (KYC) information from clients.
Among other things, name, date of birth, and address are typical components of KYC information.
The FBI also advised consumers to use a tool from the U.S. Financial Crimes Enforcement Network (FinCEN) to check if a company is registered as a Money Services Business. Crypto companies like Coinbase and Kraken (officially known as Payward Financial Inc.) surfaced after The Block deployed the technology.
According to the statement, the FBI has recently carried out law enforcement actions against Bitcoin services that lacked the necessary federal law licenses. When law enforcement takes action, people who utilize unregistered Bitcoin money sending services may experience financial difficulties, particularly if their cryptocurrency is mixed up with money gained illegally.
Additionally, the FBI cautioned users against using cryptocurrency services that do not require KYC data, including name and address, before allowing you to send or receive cryptocurrency. It goes on to say that not all apps in app stores support legal services or adhere to government compliance standards.
Law enforcement will look into cryptocurrency money transmission providers that knowingly assist unlawful activities or intentionally disobey the law, according to the FBI announcement. You run the risk of losing access to money if you use a service that violates its legal requirements and is targeted by law authorities.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
