FBI Urges Caution To Avoid Unregistered Cryptocurrency Exchanges
- FBI warns against unregistered crypto exchanges.
- Users were urged to avoid crypto services that lack KYC.
- Clients can verify exchange registration with FinCEN.
The FBI has urged Americans to stop using unregistered cryptocurrency exchanges. The Internet Crime Complaint Center (IC3), Alert Number I-042524-PSA, announced this in a press release on Thursday. In the statement, the FBI encouraged users to patronize firms registered as Money Services Businesses (MSBs) and comply with anti-money laundering regulations.
The agency instructed users to avoid any crypto service provider that fails to implement the required ‘know your customer’ (KYC) protocols. The FBI noted, “A few simple steps can prevent unintentional use of non-compliant services. For example, avoid cryptocurrency money transmitting services that do not collect ‘know your customer’ (KYC) information from customers when required.”
KYC usually involves collecting a customer’s name, birth date, and address.
To help identify compliant businesses, the FBI directed individuals to verify the registration status of an exchange using “a tool from the U.S. Financial Crimes Enforcement Network (…
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