FBI warns against using unregistered encryption services
Key Takeaways
- The FBI has warned US cryptocurrency users to only use registered money transfer services.
- Recent FBI operations are targeting unlicensed cryptocurrency businesses, highlighting the risk of losing funds if you become involved with these non-compliant services.
- The recent arrest of the founder of cryptocurrency mixer Samourai Wallet highlights ongoing law enforcement activity.
The Federal Bureau of Investigation (FBI) issued a warning We advise users of cryptocurrency services in the United States to only transact with registered senders. Comply with Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations.
It is assumed to be from the FBI. The main target could be a cryptocurrency mixer. It is designed to hide traces of cryptocurrency transactions.
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In an April 25 public service announcement, the FBI emphasized the following: Law enforcement activities against cryptocurrency companies that are not registered as Money Service Businesses (MSBs) And warned:
If you use a service that doesn’t comply with your legal obligations, you risk losing access to your funds after law enforcement targets your business.
The FBI’s statement said: rekindled Debate over classification of cryptocurrency service providers.
Ryan Sean Adams, co-founder of Bankless, called the FBI’s announcement “chilling.” Under current law, there is uncertainty as to how many types of cryptocurrency services could inadvertently fall into the MSB category.
When the FBI warns It coincides with the arrests of Keonne Rodriguez and William Hill, co-founders of cryptocurrency mixer Samourai Wallet. They were charged with money laundering and operating an unlicensed money transfer business, and could face up to 25 years in prison if found guilty.
Tensions between cryptocurrency companies and U.S. regulators are also echoed in a number of legal battles involving the Securities and Exchange Commission (SEC), which recently called for Ripple Labs to be fined $1.95 billion.
These cases highlight the importance of clear regulatory guidance, as gaps in current law pose challenges for the future of digital finance.
With a master’s degree in Economics, Politics, and Culture in East Asia, Aaron wrote a scientific thesis analyzing the differences between Western capitalism and collective capitalism after World War II.
With nearly 10 years of experience in the fintech industry, Aaron understands all of the biggest issues and challenges cryptocurrency enthusiasts face. He is a passionate analyst with an interest in data-driven and fact-based content, as well as content targeting both Web3 native users and industry newcomers.
Aaron is our go-to guy for all things digital currency. With a huge passion for blockchain and Web3 education, Aaron is working to transform the space as we know it and make it more accessible to complete beginners.
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