U.S. regulators alleged the exchange traded digital assets without verifying customer identities and implementing an anti-money laundering program.
Jack Dorsey says the new rules will drive cryptocurrency users to use unregulated third-party wallets, including ones hosted outside the United States.
FinCEN reports that the total value of attempted thefts climbed to an average of $301 million per month in 2018 from only $110 million per month in 2016.
The anti-money laundering action means buyers of high-end property in Manhattan and Miami can no longer hide behind shell companies.
Ripple Labs, creator of the XRP digital currency, failed to maintain money laundering programs or register as a money services business, charges FinCEN.
Law-enforcement officials agree that the benefits of a virtual currency like Bitcoin outweigh the risks, but they also insist Bitcoin needs regulation.
