Tether introduced on Thursday its collaboration with blockchain surveillance agency Chainalysis to observe transactions involving its tokens on secondary markets. The transfer goals to reinforce Tether’s capacity to determine and handle potential dangers related to illicit actions equivalent to terrorist financing and sanctions evasion.
The monitoring system, which incorporates capabilities for worldwide sanctions compliance and detection of illicit transfers, will allow Tether to determine crypto wallets which will pose dangers or be linked to illicit and/or sanctioned addresses. Tether CEO Paolo Ardoino emphasised the importance of this collaboration in selling transparency and safety inside the cryptocurrency trade.
This partnership comes amidst rising regulatory strain on Tether globally, with considerations raised about USDT’s purported position in circumventing worldwide sanctions and facilitating illicit finance. Experiences have surfaced of Venezuela’s state-run oil firm utilizing USDT to bypass U.S. sanctions, whereas a United Nations report highlighted the stablecoin’s involvement in underground banking and cash laundering in East Asia and Southeast Asia.
USDT, with a circulating provide exceeding $110 billion, maintains a peg to the US greenback and is primarily backed by U.S. Treasury bonds held in reserve, managed by Cantor Fitzgerald. Tether not too long ago reported first-quarter earnings of $4.52 billion, underscoring its prominence within the cryptocurrency market regardless of regulatory challenges.
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