Stablecoin issuer Tether has announced another step towards cooperation with law enforcement and regulatory agencies Beginning of A voluntary wallet-freezing policy, according to a blog post on December 9.
Starting December 1, Tether is offering secondary market controls to prevent activity associated with individuals sanctioned on the United States Office of Foreign Assets Control (OFAC) Specially Designated Nationals (SDN) list. Companies and individuals controlled or owned by sanctioned countries are included in the list.
According to Tether, the policy will complement existing security protocols and is “a proactive effort to work even more closely with global regulators and law enforcement agencies.”
Tether introduces new policy to strengthen ecosystem security
Read more ⬇️https://t.co/kCCFhLflfb
– Tether (@Tether_to) 9 December 2023
US Treasury Department potentially using list to curb crypto transactions linked to illegal activitiesThat includes terrorism financing and unauthorized fentanyl distribution.
The wallets previously added to the SDN list have already been frozen by Tether, a move that runs contrary to the company’s previous position on the matter. For example, in August 2022, Tether Announced that it will not actively close Sanctioned Tornado cache addresses unless otherwise directed by law enforcement. According to OFAC, individuals and criminal organizations Tornado Cache is used Laundering over $7 billion in cryptocurrencies since 2019.
Paolo Ardoino, CEO of SDN, said, “By enabling voluntary wallet address freezing of new additions to the SDN list and freezing previously added addresses, we are aiming to further strengthen the positive use of stablecoin technology and create a secure stablecoin ecosystem for all users.” Will be able to promote.” bond.
The Hong Kong-based company is behind the stablecoin Tether (USDT), whose market capitalization reached an all-time high amid a crackdown on crypto firms in the US over the past months. Currently, it has a market capitalization of $90 billion, indicating strong demand for the stablecoin holds About 70% of the market.
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