Despite the US Congress’s inability to implement comprehensive cryptocurrency regulations, it does not shy away from imposing sanctions. Particularly, legal actions and investigations are initiated within their jurisdiction against crypto companies providing unregistered services. Today, the FBI also issued a warning to US citizens about using unregistered crypto transfer services.
FBI and Cryptocurrencies
According to a recent alert from the Federal Bureau of Investigation’s Internet Crime Complaint Center (IC3), Americans should avoid companies that operate as unregistered Money Services Businesses (MSBs) under federal laws. The US is taking action against such crypto companies under anti-money laundering regulations that require registration for payment and transfer services.
We last heard about MSB licensing during the applications by X, formerly known as Twitter. After Elon Musk took over, the platform applied for MSB registration in all states to offer financial services and succeeded in many states.
The FBI statement reads;
“A few simple steps can prevent the unintentional use of non-compliant services. For example, avoid crypto companies that do not collect Know Your Customer (KYC) information when necessary. Check their money transfer licenses.”
The Gray Area of Cryptocurrencies
The previously unregulated world of cryptocurrencies is now becoming traditional. Governments, especially the US, are beginning to show their surveillance power and ability to impose rules here as well. The FBI also says that users should check the companies they transact with through the US Financial Crimes Enforcement Network (FinCEN).
“Recently, the FBI has conducted law enforcement operations against unlicensed crypto services complying with federal laws. Individuals using unlicensed cryptocurrency money transfer services, especially if the cryptocurrencies are mixed with illegally obtained funds, may face issues during law enforcement actions. Cryptocurrency money transfer services that knowingly violate laws or facilitate illegal transactions will be investigated by law enforcement.”
Using a service that does not comply with legal obligations can lead to the loss of access to your funds following operations targeting these businesses by law enforcement.”
