Banks to unknowingly process crypto, says CipherTrace

Tuesday 17 December 2019 12:57 CET | News

Large banks may be processing up to USD 2 billion in undetected cryptocurrency-related transfers each year, according to blockchain intelligence company, CipherTrace.

While both the US 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.

The company 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, according to CoinTelegraph.

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

The company has argued that the new FATF regulations might demand crypto businesses they track not only their own customers’ transactions but also where their customers are sending their funds. Overall, revised BSA and FATF guidance — soon to come into effect for G20 nations — will make identification and compliance even more critical, CipherTrace notes.

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Keywords: CipherTrace, cryptocurrency, cryptocurrency transactions, crypto payments, US, banks, regulation
Categories: DeFi & Crypto & Web3
Countries: United States
This article is part of category

DeFi & Crypto & Web3