Seattle, Washington Apr 27, 2024 (Issuewire.com) - The FBI has advised US citizens to not use any unregistered crypto services through which it transmits its assets. On April 25, the agency warned users to avoid any kind of transaction on the decentralized platforms that are unregistered. It is recommended not to engage in any crypto money transmitting. Most of the crypto agencies are not registered under the Money Services Businesses (MSBs) under US federal law. The FBI has also said that individuals should avoid all kinds of 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 that.
The FBI has asked users to check whether their crypto company is registered as MSB with the US Treasury’s Financial Crimes Enforcement Network (FinCEN). However, as per the notice, the registration is not considered the “recommendation, certification of legitimacy, or endorsement” by the government. Similarly, the third-party listing does not show any approval from the government since an application or app does not require any legal service to be listed on the app store. Users are currently prone to risk as they can face significant ‘Financial Disruption’ or a massive loss in funds. However, the notice does not suggest the fact that the authority will penalize the users as many are still in doubt whether it could be a part of the enforcement act.
The FBI has recently conducted a few strict enforcement actions against unregistered crypto services which are a potential risk to the users. The past announcements suggest that many cases included charges which are related to an unlicensed money service business that led to the trials of massive money laundering. For example, the FBI and various other agencies took action against the Samourai Wallet on April 24. They then seized the website and arrested the two co-founders of the company. They suggested that the co-founders are related to illegal money-transmitting business. They have been offering coin-mixing features, a classic technique for money laundering.
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