Tether, the world’s largest stablecoin, has strengthened oversight over how its tokens are used in broader crypto markets and payments in a bid to combat unlawful funding, according to a statement issued
Tether, the world’s largest stablecoin, has increased supervision of how its tokens are used in broader crypto markets and payments in an effort to curb illegal funding, according to a statement released on Thursday.
Tether, a cryptocurrency tied to the US dollar, and blockchain analytics firm Chainalysis have launched new tools to detect transactions connected with sanctioned businesses and analyze the activities of the token’s big holders, Tether announced.
Last month, it was reported that Venezuela’s state-run oil giant PDVSA intended to increase the use of Tether in its crude and fuel shipments at a time when the United States has reinstated oil sanctions.
When asked if Thursday’s announcement was related to the report concerning Venezuelan oil, a Tether spokeswoman stated that the company’s collaboration with Chainalysis to create a more sophisticated monitoring tool had been “in the works for several months.”
“For some years, Tether has used chain analysis data as the cornerstone for our investigation and compliance efforts. Also, Tether has clearly acknowledged its compliance with the OFAC/SDN list,” the spokesperson added in an emailed statement, referring to the penalties imposed by the US Treasury’s Office of Foreign Asset Control.
Tether has previously stated that all cryptocurrency transactions are online and traceable and that “every asset can be seized and every criminal caught.”
Tether has expanded fast in recent years, with $100 billion in circulation in March. Tether CEO Paolo Ardoino said last month that the company’s development has been driven by its adoption as an alternative to the dollar in emerging economies.
Stablecoins can be used to make payments as well as to convert other tokens, such as bitcoin, while trading on cryptocurrency exchanges.
Tether, which is incorporated in Hong Kong and owned by a firm registered in the British Virgin Islands, has previously stated that it can freeze its tokens in response to law enforcement inquiries.
Do Follow: CIO News LinkedIn Account | CIO News Facebook | CIO News Youtube | CIO News Twitter
About us:
CIO News is the premier platform dedicated to delivering the latest news, updates, and insights from the CIO industry. As a trusted source in the technology and IT sector, we provide a comprehensive resource for executives and professionals seeking to stay informed and ahead of the curve. With a focus on cutting-edge developments and trends, CIO News serves as your go-to destination for staying abreast of the rapidly evolving landscape of technology and IT. Founded in June 2020, CIO News has rapidly evolved with ambitious growth plans to expand globally, targeting markets in the Middle East & Africa, ASEAN, USA, and the UK.
CIO News is a proprietary of Mercadeo Multiventures Pvt Ltd.
