- The FBI recommends avoiding using unregistered crypto services, citing hazards and AML/KYC compliance.
- In recent enforcement actions, Samourai Wallet and others were caught operating without licenses and laundering money.
The Federal Bureau of Investigation (FBI) issued a significant warning for all American citizens using cryptocurrencies on April 25. Avoid unregistered crypto money transmission services was the main warning.
If not registered under U.S. federal law as Money Services Businesses (MSB), these services put their users in serious danger. Anti-money laundering (AML) regulations must be followed, and sufficient know-your-customer (KYC) data must be gathered, according to the FBI.
JUST IN: 🇺🇸 FBI warns Americans against using unregistered crypto money transmitting services
— wallstreetbets (@wallstreetbets) April 25, 2024
A Must for Crypto Enthusiasts: Registration Checks
Consumers are advised to determine before doing business with a cryptocurrency service whether it has achieved certification as an MSB by American government authorities. The United States Treasury Department’s Financial Crimes Enforcement Network (FinCEN).
The point is that as long as you register with FinCEN, it is not given government recognition for safety; instead, the system only puts into your hands a certificate of legitimacy.
Helping users navigate the complicated crypto world and make educated judgments requires understanding this distinction.
Understanding App Listings Can Help You Avoid Legal Troubles
The FBI further emphasized that the mere availability of a cryptocurrency app in well-known app stores does not imply that it is legitimate or has the endorsement of the government.
Users may erroneously trust and use services that are not only unlawful but potentially hazardous as a result of this misperception. Before using any cryptocurrency service, the advice acts as a reminder to conduct in-depth study and due diligence.
What’s Happening in the Crypto World in Light of Recent Crackdowns?
Recent enforcement actions against unregistered and non-compliant crypto services set the stage for the agency’s warning, in line with what ETHNews previously disclosed.
Significantly, authorities raided the Samourai Wallet on April 24, the day before the advisory, taking control of the company’s website and detaining its two developers.
The fees? running an unauthorized money-transmission enterprise and providing coin-mixing functionality to enable money laundering.
This case, as well as actions taken against other organizations like Tornado Cash, ChipMixer, Helix, and international exchanges like Bitzlato and BTC-e, highlight a growing trend of regulatory monitoring in the crypto space.