fincen warns casinos about illegal convertible virtual currency FinCEN to Shed Light on Illicit Use of Virtual Currency Mixing - FinCENred flags for money laundering convertible virtual currency FinCEN Issues a Stark Warning to Casinos Regarding Illegal Convertible Virtual Currency Activities

FinCENAdvisory codes The Financial Crimes Enforcement Network (FinCEN) has issued a significant warning to casinos concerning the growing misuse of convertible virtual currency (CVC), often referred to as crypto, by illegitimate actors.As described inFinCEN'sorders, covered financial institutions are prohibited from engaging in transmittals of funds from or to CIBanco, ... This advisory highlights the increasing exploitation of virtual currency and related services for illegal activities, including fraud, money laundering, and terrorist financing. FinCEN is urging financial institutions and the gaming industry to be vigilant and adhere to robust anti-money laundering (AML) and combating the financing of terrorism (CFT) protocols.

In recent advisories, notably the FinCEN Notice on the Use of Convertible Virtual Currency Kiosks for Scam Payments and Other Illicit Activity, the agency has detailed how convertible virtual currency (CVC) kiosks, also known as cryptocurrency ATMs, are being increasingly leveraged for fraudulent schemes. These schemes include fake tech support scams and bank-related frauds, where victims are coerced into making payments using virtual currency.FinCEN proposes rule targeting international convertible ... The warning further emphasizes that casinos accepting convertible virtual currency have specific reporting obligations under the Bank Secrecy Act (BSA)FinCEN Issues Warning on Bitcoin ATMs Used in Scams.

This is not the first time FinCEN has addressed the complexities of digital assets. The agency has previously issued Convertible Virtual Currency (CVC) Advisory to Casinos, outlining the application of BSA regulations to virtual currency transactions. FinCEN's stance has consistently been that while they do not recognize virtual currencies as "real" currencies, transactions involving the acceptance and transmission of value substituting for real currency fall under their purview. This means that businesses, including casinos, dealing with convertible virtual currency may be considered money services businesses and are subject to applicable regulations.

The surge in illicit activity surrounding virtual currency has prompted FinCEN to ramp up its efforts. Recent notices, such as the one issued concerning crypto ATMs being exploited for drug money laundering, underscore the broad spectrum of criminal enterprises utilizing these technologies. FinCEN is actively working to shed light on illicit use of virtual currency mixing and other sophisticated techniques employed by criminals. FinCEN's issuance of Convertible Virtual Currency Guidance And Advisory provides a framework for identifying these risks.FinCEN proposes rule targeting international convertible ...

Furthermore, FinCEN is emphasizing a high-profile scam involving the exploitation of social media accounts to solicit fraudulent payments in convertible virtual currency (CVC). This highlights the evolving nature of criminal tactics and the need for continuous adaptation in detection and prevention strategies2025年8月5日—The regulator cited a growing number of scams involvingcryptokiosks, including fake tech support and bank-related scams.. For casinos, this means being aware of the potential for sophisticated scams targeting their customer base and implementing measures to safeguard against such exploits. The agency has also been active in targeting Convertible Virtual Currency Mixing, a method used to obscure the origin and destination of illicit funds, and has proposed rules to address international convertible virtual currency mixing as a class of transactions of "primary money laundering concern.About FinCEN | FinCEN.gov"

In 2019, FinCEN issued significant guidance impacting how businesses handle Convertible Virtual Currencies. This guidance largely summarized the agency's existing regulatory framework, reinforcing that the rules apply to transactions involving the acceptance and transmission of value that substitutes for real currency. This includes the use of virtual currency in online gaming environments. The agency has also been instrumental in identifying red flags through various advisories, such as the FinCEN Advisory on Crypto ATM Scams, designed to assist financial institutions in spotting suspicious activities.FinCEN Notice on the Use of Convertible Virtual Currency Kiosksfor Scam Payments and Other Illicit Activity. FinCEN Notice FIN-2025-CTA1, 02/18/2025, FinCEN ...

The FinCEN continues to monitor and address the landscape of digital assets, providing crucial alerts and advisories to financial institutions. The agency's focus on convertible virtual currency is a testament to its commitment to combating financial crime in an increasingly digital world. Casinos and other relevant entities are strongly advised to familiarize themselves with FinCEN's guidance, including FinCEN's notices on the use of convertible virtual currency (CVC) kiosks, and to maintain robust compliance programs to prevent their operations from being tainted by illegal activities.FinCEN Targets Crypto Kiosks as Fraud Losses Detonate ... This proactive approach is essential to maintaining the integrity of the financial system and protecting consumers from the growing threats associated with virtual currency2019年8月14日—Director Blanco also addressed “so-called [convertible virtual currency, or CVC]casinoson the Internet,” as well as “physicalcasinosand card ....