In a recent development that has triggered mixed feelings among crypto investors and enthusiasts, the Federal Bureau of Investigation (FBI) has warned Americans to stop patronizing unregistered cryptocurrency exchanges.
The statement, issued in a press release by the Internet Crime Complaint Centre (IC3), Alert Number I-042524-PSA, emphasizes the importance of Americans seeking to invest only to patronize firms registered as Money Services Businesses (MSBs) and fully compliant with anti-money laundering regulations.
Details Of FBI's Alert To American Crypto Users
According to the FBI, crypto outlets that fail to collect customers' (KYC) information (including personal details like name, date of birth, and address, among others) do not depict the qualities of an ideal crypto platform, making them unsafe for crypto users, as they risk losing valuable funds.
The agency also noted that investors should not misinterpret the availability of an exchange's app on an app store with credibility or legality. It sternly warned that aside from losing their hard-earned capital, users might experience unusual disruptions in triggering transactions via unregistered platforms, especially if their cryptocurrency becomes mixed with other funds obtained through illegal means.
The FBI proposed a solution to help investors identify registered businesses, recommending that before patronizing the services of any crypto exchange, investors should verify the registration status of that business as an MSB on the US Treasury Department’s Financial Crimes Enforcement Network (FinCEN) official website.
Punishment For Erring Exchanges
Per the released document, regulatory compliance offenders will be charged to court and punished according to the law depending on the level of their negligence to the guiding principles.
Meanwhile, the recent development has sparked widespread reactions among crypto investors and enthusiasts, as most took to X to vent their dissatisfaction with the FBI's notice.
Ryan Sean Adams, a co-founder at Bankless, described the warning as "eerie" while questioning the criteria to qualify as an MSB.
Most X users who commented on Adams' tweet seem to share similar opinions with the co-founder as they also queried the status quo of the FBI's discrimination.