As a crypto investor with experience in the industry, I’ve seen my fair share of controversies surrounding stablecoins like Tether (USDT). The recent announcement that Tether will collaborate with Chainalysis to monitor the secondary market for USDT and identify wallets associated with illicit or sanctioned addresses is a welcome development in my opinion.
Tether can keep track of its stablecoin’s secondary market through a new feature developed by Chainalysis, a leading blockchain analysis firm. This innovation grants Tether the capacity to glean market intelligence and pinpoint wallets potentially linked to suspicious or embargoed accounts.
In simpler terms, the new approach encompasses various instruments. Tether revealed four key components in their recent website update. The Sanctions Monitoring tool generates a record of prohibited entities and their related transactions. Meanwhile, the Illicit Transfer Detector identifies suspect transactions that may be linked to terrorism financing or similar illicit activities.
Tether classification will sort USDT owners into distinct groups, like exchanges or illegal markets. In-depth examination will concentrate on prominent USDT holders and their transactions. As expressed by Tether CEO Paolo Ardoino:
“Our collaboration with Chainalysis marks a pivotal step in our ongoing commitment to establishing transparency and security within the cryptocurrency industry. […] This collaboration reinforces our proactive approach to safeguarding our ecosystem against illicit activities.”
As a crypto investor, I’ve noticed Tether’s collaboration with authorities in 43 jurisdictions to tackle illicit activities. However, there have been criticisms against the stablecoin due to its alleged involvement in criminal activities and terrorism financing.
I came across an issue where Senator Cynthia Lummis and Representative French Hill raised concerns about my role in the Hamas attacks on Israel in October. They penned a letter to Attorney General Merrick Garland requesting an investigation into my activities and those of Binance, implying that we were willfully violating applicable sanctions laws.
The United Nations Office on Drugs and Crime (UNODC) published a report in January criticizing the involvement of cryptocurrencies, specifically Tether (USDT), in financing organized crime in East and Southeast Asia. In response, Tether argued that the UNODC disregards the traceability features of USDT.
Tether has faced criticism for insufficient financial transparency. The value of USDT currently stands at $109.8 billion, significantly surpassing that of its closest rival, USD Coin (USDC), with a market cap of only $33.9 billion.
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2024-05-02 23:54