Around $2bn crypto transactions in the US go undetected


The US-based cryptocurrency intelligence firm CipherTrace released a report on Monday that revealed and that around two billion US dollars ($2 billion) crypto transactions are carried out unknowingly by leading commercial banks in the US.

The Chief financial analyst at CipherTrace, John Jefferies, writes in his report that he is yet to find a US bank whose payment network hasn’t facilitated crypto transactions. At least ten leading retail banks in the US report unrecorded crypto money transfers, with most of the funds stemming from cryptocurrency-related money service businesses (MSBs) like exchange platforms and broker-dealers.

Top US banks facilitate crypto transactions unknowingly

Jefferies, in his report, pointed out the fact that whether the bank is pro-crypto and wants to embrace it by assessing the risks and benefits associated with it or it is anti-crypto and does not support crypto payments and transactions in any form, they are all dealing with crypto, like it not.

Typically, a large retail bank processes around two billion US dollars in crypto. This implies that despite the U.S. Bank Secrecy Act and Financial Action Task Force’s imposed travel rules that require financial entities to outline and know the MSBs they deal with, large-scale institutions still lack the appropriate equipment and the newest technology to monitor these transactions. 

CipherTrace empowering banks with efficient tracking tools

CipherTrace is assisting banks in identifying and tracking these undetected crypto transactions. Recently, the CipherTrace Labs declared the launch of an ingenious tool, called CipherTrace Crypto Risk Intelligence, developed in liaison with bank’s security advisors, that conducted risk profiling of Virtual Assets Service Providers (VASPs). It uncovers the risks associated with the undisclosed connections between VASPs and bank’s payment network. The company further claims that the tool tracks unapproved MSBs and payment systems, including dark web transactions.

CipherTrace’s innovative solution also helps banks to identify those crypto-related businesses that have low-risk scores and easier to deal with. By offering valuable insight into their risk scores, compliance with anti-money laundering and know-your-customer policies, CipherTrace enables banks with an ability to choose their strategic alliances and clients wisely. 

Featured Image by Pixabay

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Manasee Joshi

An avid reader and an enthusiastic writer, Manasee recently chose to dedicate her time doing freelance writing. A degree in English literature and experiences in Administration, HR, finance, literature, creativity and innovation tucked under her belt, she crafts engaging and compelling content for crypto and blockchain audience.

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