Major Banks Unknowingly Process Billions in Crypto Business, Says CipherTrace

Blockchain intelligence firm CipherTrace has claimed that large banks may be processing up to $2 billion in undetected cryptocurrency-related transfers each year.

In a press release shared with Cointelegraph on Dec. 16, CipherTrace claims that its research unit has found that every one of the United States’ top 10 commercial banks have unregistered cryptocurrency businesses using their payments networks to process funds.

These unregistered cryptocurrency money service businesses (MSBs) include entities such as crypto exchanges, according to the research. 

Known unknowns

While both the U.S. Bank Secrecy Act and Financial Action Task Force (FATF) funds Travel Rules require banks to identify the MSBs using their networks by law, CipherTrace claims that many are ill-equipped to adequately identify crypto exchanges and other virtual asset service providers (VASPs) as MSBs.

Revised BSA and FATF guidance — soon to come into effect for G20 nations — will make identification and…