The FBI on April 25 advised US citizens to use unregistered crypto services to transfer assets.
The agency’s warning stated that users should avoid cryptocurrency sending services that are not registered as Money Services Businesses (MSBs) under US federal law.
Individuals should also avoid services that do not meet anti-money laundering (AML) requirements and do not collect know-your-customer information (KYC).
Users should check to see if a service like MSB is registered with the U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN). However, even registration is not a “recommendation, certification of legitimacy or approval” from the government, the notice said.
Third-party listings also do not represent government endorsement, as an app is not necessarily a legal service just because it is listed in an app store.
Users are at risk because they may experience “financial disruptions” or loss of money when authorities conduct enforcement efforts. The notice does not suggest that authorities will fine users or address them directly as part of enforcement action.
Recent US actions
The FBI said it has conducted recent enforcement operations against unregistered crypto services, which are well-known due to the agency’s previous announcements.
In many cases, these are costs associated with operating an unlicensed money service business and money laundering.
Several agencies, including the FBI, took action against Samourai Wallet on April 24, seizing the website and arresting its two co-founders. Authorities accused the founders of running an unlicensed money transmission business because the Samourai Wallet offered coin mixing features, which were allegedly used for money laundering.
Other previous cases have targeted the operators of coin mixers such as Tornado Cash, ChipMixer and Helix, and the operators of foreign crypto exchanges such as Bitzlato and BTC-e.
