The Federal Bureau of Investigation (FBI) has issued a warning to Americans, advising them to refrain from using cryptocurrency services provided by firms that are not registered as Money Services Businesses (MSBs) under federal law. The bureau emphasized the importance of compliance with anti-money laundering regulations and urged users to take necessary precautions.

The FBI's Internet Crime Complaint Center (IC3) released a statement on Thursday, highlighting the potential risks associated with using non-compliant crypto services. According to the statement, Americans should avoid services that do not collect Know Your Customer (KYC) information when required, as this is a crucial step in preventing unintentional use of non-compliant services.

KYC information typically includes personal details such as name, date of birth, and address, among other identifying information. The FBI provided a valuable resource for users to verify whether a business is registered as a Money Services Business by using a tool from the U.S. Financial Crimes Enforcement Network (FinCEN). Major cryptocurrency firms like Coinbase and Kraken (legally known as Payward Financial Inc) appeared when The Block utilized the tool.

The FBI emphasized that it has recently conducted law enforcement operations against cryptocurrency services that were not licensed in accordance with federal law. Users who utilize unlicensed cryptocurrency money transmitting services may encounter financial disruptions during such law enforcement actions, especially if their cryptocurrency is intermingled with funds obtained through illegal means.

Furthermore, the bureau warned against using crypto services that do not request KYC information, such as name or address, before allowing users to send or obtain cryptocurrency. It also cautioned that apps available in app stores may not necessarily comply with federal compliance requirements or facilitate legal services.

The FBI's release stated, "Cryptocurrency money transmitting services that purposely break the law or knowingly facilitate illegal transactions will be investigated by law enforcement." It added that using a service that does not comply with its legal obligations may put users at risk of losing access to their funds after law enforcement operations target those businesses.

In summary, the FBI's warning aims to protect Americans from inadvertently using non-compliant crypto services and urges them to exercise caution by verifying the registration status of businesses and avoiding those that do not follow KYC and anti-money laundering regulations.