Crystal Intelligence has released new data showing a vast network of unmarked cash-for-crypto services operating globally, processing a large sum of money while evading detection.
Crystal’s research team has uncovered hundreds of active cash-for-crypto services conducting operations worldwide, from Vancouver’s commercial districts to Hong Kong’s financial centres.
Crystal Intelligence’s findings
In its research, Crystal Intelligence has discovered that these networks avoid detection by most blockchain analytics tools. Additionally, the company found that Hong Kong’s cash desks alone processed over USD 2.5 billion in 2024, with similar transactions uncovered in cities such as Vancouver and resort destinations in Thailand, Sri Lanka, and Egypt. These solutions usually act as nested intermediaries, enabling customers to bypass standard Anti-Money Laundering (AML) and Know Your Customer (KYC) controls.
Furthermore, even if not all of these operations are illegal, as they can provide legitimate remittance and business services, the extent of unregulated activity poses a significant compliance and business risk. Crystal Intelligence’s findings highlighted that major crypto exchanges, such as Binance, OKX, and Bybit, receive large sums of money annually from these intermediaries.
Commenting on its discoveries, Cryptal Intelligence representatives stated that traditional blockchain analytics tend to miss the critical first step of how cash actually becomes crypto, and, by the time the funds appear on-chain, the risk moment has passed, and transactions look legitimate and clean. The company’s research also reveals that 33% of these services’ activity includes unlicensed exchanges, with links to illegal services and sanctioned entities. This leads to increased regulatory exposure for exchanges and traditional financial institutions. A large segment of banks implements due diligence frameworks that underestimate crypto risk by failing to see cash conversion points. However, as more regulators across the world tighten their controls, financial institutions that allow unlicensed services, whether knowingly or not, are set to encounter more scrutiny.
