The US Federal Bureau of Investigation (FBI) has warned Americans against using unauthorized cryptocurrency transfer services.
IC3 issued a statement highlighting the legal and financial risks associated with using the platform to circumvent anti-money laundering regulations and money services business (MSB) registration requirements.
The FBI recommends checking to see if your virtual currency service is listed on the MSB overseen by the U.S. Financial Crimes Enforcement Network (FinCEN) to avoid accidental collaboration with illicit operators.
This step is critical because unregistered services often fail to collect sufficient Know Your Customer (KYC) information. This exposes customers to financial losses, especially if law enforcement authorities shut down the platform due to illegal activity.
Evading legal regulations by providing cryptographic services intended to prevent illegal transactions can lead to serious penalties.
For example, the FBI's latest investigation targets service organizations that handle large sums of money. This led to the seizure of assets from these entities in the auspicious situation where they were mixed up with illegally obtained funds. The FBI's only option is to choose a trusted service that is registered to avoid legal issues and risks.
Also read: FBI investigates Bitcoin development event related to Luke Dasch Jr. hack
