FBI Warning

This may be a little late, but hopefully it reaches those who missed the initial announcement. On April 25th of this year, the FBI released a Public Service Announcement (PSA) that everyone using cryptocurrency should be aware of. The PSA, titled "Alert on Cryptocurrency Money Services Businesses," essentially states that the public should be cautious about services offering crypto transfers that are not registered as Money Services Businesses (MSB) with the Financial Crimes Enforcement Network (FinCEN).

The main points of the announcement are as follows:

Do Your Homework: It's crucial to research the company through which you transfer your cryptocurrency. Using a service registered as an MSB is safer because these companies are required to follow stringent regulations designed to protect consumers from scams and fraudulent activities.

Financial Safety: If the FBI investigates an unregistered company, your funds associated with that company could be frozen. In the worst-case scenario, if the company faces legal charges and you are found to be involved, you could also be liable to face charges.

Compliance with Regulations: Registered MSBs comply with Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations. These measures help prevent illegal activities and protect your investments from being tied to illicit funds​​.

Here are a few tips to keep you and your cryptocurrency safe:

1. Check with FinCEN if you are unsure about a site. You can visit the FinCEN website and they allow you to search their registry database to see if the company you are thinking of using is listed.

2. Don't trust a site that does not KYC. KYC is required by the Financial Industry Regulation Authority (FINRA) rule 2090 and states that financial institutions must use reasonable diligence to identify and retain identity of every customer and every person acting on behalf of those customers. In enforcing this rule companies are required to obtain essential information which is gathered mainly with the KYC protocol.

3. If unsure you should just go with a well-known and trusted company. It's not ever 100% safe but it beats chancing a sketchy company.

4. And as always stay informed. keep up to date on any news or updates that you see. These will keep you from unknowingly falling into a trap.

Goodluck and stay safe.