FBI Warns About Using Crypto On Non KYC Platforms

Estimated read time 3 min read

The US Federal Bureau of Investigation (FBI) today launched an alert to bitcoin (BTC) and cryptocurrency users, recommending them avoid using platforms or services that do not have the know-your-customer (KYC) protocol. ).

In a public service announcement released on April 25, the FBI indicated that cryptocurrency services or platforms that do not comply with “legal obligations” in the United States can “put people at risk” and are at risk of losing their funds. , especially if entities like the FBI intervene and raid these companies.

In this way, the FBI recalls that they have participated in police operations to intervene in bitcoin and cryptocurrency companies “that were not licensed in accordance with federal laws.”

“Individuals who use unlicensed cryptocurrency money transmission services may suffer financial disruption during law enforcement actions, especially if their cryptocurrency is mixed with funds obtained through illegal means,” the FBI argues.

Likewise, the FBI stated that US authorities “will investigate cryptocurrency money transmission services that intentionally violate the law or deliberately facilitate illegal transactions.”

The FBI alert comes one day after it became known that that office collaborated in the intervention of Samourai Wallet , one of the bitcoin wallets that best preserves the privacy of its users.

As reported by CriptoNoticias on Wednesday, April 24, US authorities, including the FBI , placed the founders of that BTC wallet under arrest . This on the grounds that they conspired to enable money laundering and to operate an unauthorized money transmission service.

The FBI has also participated in other operations that have targeted BTC and cryptocurrency companies. For example, in August 2023, it was learned that this office participated in the confiscation of USD 2 million in digital assets.

As part of its narrative, the FBI offered advice to cryptocurrency users to “protect themselves.” For example , using a service that is regulated by the United States.

Likewise, they insist that users do not opt ​​for platforms that do not request names, dates of birth, addresses, location, financial movements, among other personal data.

The FBI also urges people to understand that if a cryptocurrency app is in a store, “it does not necessarily mean that it is a legal service and meets federal requirements.”

The FBI’s alert on the use of platforms without KYC is contrary to the fundamentals of bitcoiners, who have publicly expressed their refusal to register their identities and other data, because this is detrimental to their privacy.

Added to this is that the KYC procedure, required of companies that offer services with cryptocurrencies, is not infallible to combat money laundering. Furthermore, it has been shown that there are ways to circumvent it. An example is artificial intelligence, a technology that has been used to create false identifications that, in the end, end up being recognized as true by these protocols, which abound in centralized bitcoin exchanges.

Graco P https://gorevillegazette.com

Graco P is an esteemed cryptocurrency journalist with over nine years of experience. Specializing in blockchain technology, his incisive analyses help demystify complex crypto trends. Graco's work appears in top financial publications, and he holds an Economics degree from the University of Chicago.

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