The FBI issues a warning regarding unregistered cryptocurrency exchanges. Crypto services that do not have Know Your Customer (KYC) policies should be avoided by users.
The Federal Bureau of Investigation has advised individuals in the United States to discontinue their usage of unregistered cryptocurrency exchanges. A press release was issued on Thursday by the Internet Crime Complaint Centre (IC3) with the alert number I-042524-PSA. The Federal Bureau of Investigations (FBI) issued a statement urging people to do business with companies who are anti-money laundering compliant and registered as Money Services Businesses (MSBs).
The government warned its citizens to stay away from cryptocurrency providers who don’t follow the necessary “know your customer” (KYC) regulations. A few easy measures can forestall the accidental utilization of non-compliant services, as pointed out by the FBI. For instance, stay away from cryptocurrency money transfer firms that don’t gather KYC information when it’s needed.
Typically, a customer’s name, date of birth, and address are required for Know Your Customer procedures.
In order to aid in the identification of lawful companies, the Federal Bureau of Investigations (FBI) advised individuals to check the registration status of an exchange by utilizing “a tool from the U.S. Financial Crimes Enforcement Network (FinCEN).”
Platforms that accept cryptocurrency but do not have the proper licensing were recently targeted by the FBI. The research states that individuals who utilize unlawful cryptocurrency money transmission services run the risk of having their finances disrupted when the government takes action, particularly if their digital currency is mixed with illicitly acquired funds.
Also mentioned in the statement was the possibility that apps available in app stores do not adhere to all applicable laws. Therefore, during interventions by law enforcement, users of such services may lose access to their funds.
In addition, the FBI has stated that they will investigate cryptocurrency providers that are involved in illicit activities or that enable such transactions. As a result, the agency emphasized that users should check the platforms’ compliance with the law to prevent any financial or legal issues.
This comes after a number of lawsuits filed by the US DOJ, which culminated in the April 24 arrest of Samourai Wallet’s founders and CEO. One of the founders was apprehended and Samourai’s web servers and domain were confiscated by the DOJ in conjunction with Icelandic and Portuguese law authorities. Along with the app on the Google Play Store, the department also issued a warrant to seize it.
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