Key Takeaways
- The FBI warns US crypto users to only use registered money transmitters;
- Recent FBI operations target unlicensed crypto businesses, stressing the risk of losing funds if involved with these non-compliant services;
- Founders of crypto mixer Samourai Wallet have recently been arrested, highlighting the ongoing law enforcement operations.
The Federal Bureau of Investigation (FBI) has issued a warning to American users of crypto services, advising them to only engage with registered money transmitters compliant with Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations.
It is speculated that the FBI's primary target could be crypto mixers, which are designed to conceal the trail of crypto transactions.
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In a public service announcement dated April 25, the FBI highlighted its law enforcement operations against crypto entities that are not registered as Money Service Businesses (MSB) and warned:
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.
The FBI's statement has reignited debates over the classification of crypto service providers.
Ryan Sean Adams, co-founder of Bankless, described the FBI's announcement as "eerie" and expressed uncertainty over how many types of crypto services might inadvertently fall into the MSB category under current laws.
The timing of the FBI's warning coincides with the arrest of Keonne Rodriguez and William Hill, co-founders of the crypto mixer Samourai Wallet. They are charged with money laundering and operating an unlicensed money-transmitting business, facing up to 25 years in prison if convicted.
The tension between crypto firms and US regulators also echoes in the many legal battles involving the Securities and Exchange Commission (SEC), which has recently requested that Ripple Labs be fined $1.95 billion.
These cases highlight the critical need for clear regulatory guidelines, as gaps in current laws pose challenges for the future of digital finance.
