Tether USDT has allegedly been used on several occasions to fund illegal transactions. The stablecoin reportedly provides an easy escape route for untraceable financial transactions between sanctioned states among others.
The allegations of USDT playing a key role in helping money laundering activities and scams have raised eyebrows within the industry, necessitating stringent compliance measures. Paolo Ardoino, the CEO of Tether responded to the collaboration’s announcement on Twitter, “Tether is laser-focused on Ecosystem Safety”
Chainalysis’s partnership with the largest stablecoin company will provide detailed reports on the extensive use of Tether, to help inform the company of possible scenarios where the stablecoin is being used unlawfully. The custom tools will monitor the secondary market, – in this case, secondary market activities are transactions conducted within the broader ecosystem using USDT.
The custom solutions will focus majorly on monitoring key identifiable areas of concern through its comprehensive suite of monitoring and analysis tools. The solution will provide a deep market analysis of USDT usage, monitoring sanctioned addresses, and providing details of USDT holders by different categorization measures.
The solution will reportedly have an illicit transfer detection tool that will flag potentially illegal transactions aiding malicious groups and terrorist organizations among others. According to Tether, the solution will be the provide also provide an in-depth analysis of the largest wallets holding USDT and thor activities.
Tether x Chainalysis’s commitment to Transparency and Security
The two companies have made clear their resolve to collaborate with regulatory authorities to provide a safer use of USDT.
Paolo Ardoino, the CEO of Tether said
“Our collaboration with Chainalysis marks a pivotal step in our ongoing commitment to establishing transparency and security within the cryptocurrency industry. Tether remains steadfast in its dedication to upholding the highest standards of integrity, and this collaboration reinforces our proactive approach to safeguarding our ecosystem against illicit activities.”
Jonathan Levin, the co-founder and Chief Strategy Officer of Chainalysis also chimed in,
“Tether’s proactive commitment to monitoring the secondary market for USDT – the world’s most popular cryptocurrency – has the potential to transform the entire ecosystem and make it a safer place to transact,”
Jonathan added, “Cryptocurrency is transparent, and harnessing that transparency to partner with law enforcement and freeze criminal funds is the best way to deter its use for terrorism, scams, and other illicit activity.”
Their official statements clearly show the commitment to upholding compliance measures is a benevolent sign for the industry. Paolo Ardoino, in an exclusive interview with Cryptopolitan, also highlighted USDT’s evolution and impact beyond America.
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