Crypto users should be aware of their service providers as the FBI has just warned US Citizens to avoid any kind of crypto transmission on unregistered platforms. Seattle, Washington Apr 27, 2024 – The FBI has advised US citizens against using any unregistered crypto services that transmit assets in a decentralized manner. On April 25, the agency warned users to avoid any transactions on decentralized platforms that are unregistered. It is recommended to not engage in any unlicensed crypto money transmitting. Most crypto agencies are not registered under the Money Services Businesses (MSBs) as required by US federal law. The FBI has also said individuals should avoid all services that fail to comply with anti-money laundering (AML) requirements. They do not collect know-your-customer (KYC) information and users should be aware of this.
The FBI has asked users to check if their crypto company is registered as an MSB with the US Treasury’s Financial Crimes Enforcement Network (FinCEN). However, as per the notice, registration does not constitute a “recommendation, certification of legitimacy, or endorsement” by the government. Similarly, third-party listings do not demonstrate government approval since apps do not require legal services to be listed in app stores. Users currently face risks and could experience significant ‘Financial Disruption’ or massive fund losses. However, the notice does not suggest the authority will penalize users as many remain uncertain if it could be part of enforcement actions.
The FBI has recently taken strict enforcement actions against unregistered crypto services which pose potential risks to users. Past announcements suggest many cases included charges related to unlicensed money service businesses leading to trials for massive money laundering. For example, the FBI and various agencies took action against Samourai Wallet on April 24. They seized the website and arrested the two co-founders of the company for allegedly operating an illegal money-transmitting business. They suggested the co-founders were related to coin-mixing features, a classic money laundering technique.
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