FBI Issues Warning Against Using 'No-KYC Cryptocurrency Money Transmitting Services'
In a move against what's deemed the best practices in Bitcoin security, the Federal Bureau of Investigations issued a warning to Americans against using 'cryptocurrency' services that are not registered as money services businesses (MSB) or do not perform KYC surveillance on their users.
- "The FBI warns Americans against using cryptocurrency money transmitting services that are not registered as Money Services Businesses (MSB) according to United States federal law and do not adhere to anti-money laundering requirements," reads the public service announcement.
"The FBI has recently conducted law enforcement operations against cryptocurrency services which were not licensed in accordance with federal law. 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," said the FBI.
- "Cryptocurrency money transmitting services that purposely break the law or knowingly facilitate illegal transactions will be investigated by law enforcement. Using a service that does not comply with its legal obligations may put you at risk of losing access to funds after law enforcement operations target those businesses," continues the alert.
- The agency then recommends avoiding cryptocurrency money transmitting services that do not collect know your customer (KYC) information from customers when required, as well as check if they are registered with FinCEN.
