I don't think it's just about larger amounts being cashed out to your bank account. I have the impression that they let the total amount you send to your bank account accumulate to have that reported.

Last year my bank account was put on hold due to unauthorized amounts of money being sent to my bank account after the last few cash out requests. I had to declare these funds, just in case it was indeed reported.

Everything was fixed pretty quickly, but for that reason I don't cash out anything anymore to my bank account in the coming few years. It makes long term hodling for me easier than ever before.