- FBI warns against unregistered crypto exchanges.
- Users were urged to avoid crypto services that lack KYC.
- Clients can verify exchange registration with FinCEN.
The FBI has urged Americans to stop using unregistered cryptocurrency exchanges. The Internet Crime Complaint Center (IC3), Alert Number I-042524-PSA, announced this in a press release on Thursday. In the statement, the FBI encouraged users to patronize firms registered as Money Services Businesses (MSBs) and comply with anti-money laundering regulations.
The agency instructed users to avoid any crypto service provider that fails to implement the required ‘know your customer’ (KYC) protocols. The FBI noted, “A few simple steps can prevent unintentional use of non-compliant services. For example, avoid cryptocurrency money transmitting services that do not collect ‘know your customer’ (KYC) information from customers when required.”
KYC usually involves collecting a customer’s name, birth date, and address.
To help identify compliant businesses, the FBI directed individuals to verify the registration status of an exchange using “a tool from the U.S. Financial Crimes Enforcement Network (FinCEN).”
The FBI recently took action against cryptocurrency platforms without the required licenses. Per the agency’s report, “people who use unlicensed cryptocurrency money transmitting services may encounter financial disruptions during law enforcement actions, especially if their cryptocurrency is intermingled with funds obtained through illegal means.”
The statement also pointed out that apps found in app stores might not meet legal standards. Hence, users employing such services could lose access to their funds during law enforcement interventions.
Furthermore, the FBI noted that crypto services found to be breaking the law or facilitating illegal transactions will be probed. Therefore, the agency stressed that users should ensure their chosen platforms comply with legal requirements to avoid potential legal and financial problems.
This development follows recent legal actions by the U.S. Department of Justice (DOJ), which resulted in the arrest of the founders and CEO of Samourai Wallet on April 24. The DOJ partnered with law enforcement agencies in Portugal and Iceland to arrest one of the founders, seizing Samourai’s web servers and domain. The department also issued a seizure warrant for the application on the Google Play Store.
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