Tether announced on Thursday its collaboration with blockchain surveillance firm Chainalysis to monitor transactions involving its tokens on secondary markets. The move aims to enhance Tether’s ability to identify and address potential risks associated with illicit activities such as terrorist financing and sanctions evasion.
The monitoring system, which includes capabilities for international sanctions compliance and detection of illicit transfers, will enable Tether to identify crypto wallets that may pose risks or be linked to illicit and/or sanctioned addresses. Tether CEO Paolo Ardoino emphasized the significance of this collaboration in promoting transparency and security within the cryptocurrency industry.
This partnership comes amidst growing regulatory pressure on Tether globally, with concerns raised about USDT’s purported role in circumventing international sanctions and facilitating illicit finance. Reports have surfaced of Venezuela’s state-run oil company using USDT to bypass U.S. sanctions, while a United Nations report highlighted the stablecoin’s involvement in underground banking and money laundering in East Asia and Southeast Asia.
USDT, with a circulating supply exceeding $110 billion, maintains a peg to the US dollar and is primarily backed by U.S. Treasury bonds held in reserve, managed by Cantor Fitzgerald. Tether recently reported first-quarter earnings of $4.52 billion, underscoring its prominence in the cryptocurrency market despite regulatory challenges.
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Source: https://cryptocurrencynews.com/tether-partners-with-chainalysis-amid-rising-regulations/
