FBI Warns Americans Against Using Unregistered Crypto Money Transmitters

cryptonews.com:

The US Federal Bureau of Investigation (FBI) has issued a warning to Americans regarding the use of crypto money-transmitting services that are not registered as Money Services Businesses (MSBs) in accordance with United States federal law. 

These laws, outlined in 31 USC § 5330 and 31 CFR §§ 1010 and 1022, mandate adherence to anti-money laundering requirements.

Before using an unlicensed cryptocurrency service, the #FBI advises users to check whether the service is registered as a money-transmitting business with the U.S. Treasury Department. Learn more https://t.co/DZPLrfKlYp pic.twitter.com/1kvf7WHqEl

— FBI (@FBI) April 25, 2024

In a statement released on Thursday by the FBI’s Internet Crime Complaint Center (IC3), individuals are urged to avoid crypto services offered by entities not registered as Money Services Businesses (MSBs) under federal law and failing to adhere to anti-money laundering (AML) regulations.

The FBI emphasized the importance of taking precautionary measures to avoid inadvertently engaging with non-compliant services.

For instance, FBI recommended to steer clear of crypto money-transmitting services that fail to collect Know Your Customer (KYC) information from customers when required. KYC information typically includes personal details such as name, date of birth, and address, among others. Furthermore, the mere presence of an app in an app store does not guarantee its legality or compliance with federal requirements.

Additionally, prior to utilizing a crypto money-transmitting service, the FBI recommended individuals verify their registration as an MSB with the US Treasury Department’s Financial Crimes Enforcement Network (FinCEN). FinCEN offers a website where users can check a company’s