Tether disputes UN findings into alleged misuse of USDT
Key Takeaways
- Tether refutes the UN report linking USDT to illegal activities and emphasizes the currency’s traceability and cooperation with law enforcement agencies.
- The company points out that USDT’s positive role in financial inclusion in underbanked regions is being overlooked.
- Tether’s response highlights the broader challenges in regulating cryptocurrencies and balancing their legal use with the potential for illicit activity.
ropeis the company that developed the famous stablecoin USDT. We have issued a strong response to the recent United Nations (UN) report. It links digital currencies to illegal activities.
The UN report released on January 15 by the Southeast Asia and Pacific Department of the United Nations Office on Drugs and Crime (UNODC) contains the following content. Cryptocurrency use in underground banking and other illegal activitiesSpecifically USDT designated as the main means of money laundering In East and Southeast Asia.
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According to the UNODC report, with the growing popularity of USDT, especially on the Tron blockchain, USDT Preferred choice for cybercriminal activities and money launderers This is because of its stable value, anonymity, efficiency, and low transaction costs.
In a rebuttal on the same day, Tedder disputed the conclusions of the UN study.according to the report Failed to consider traceability of USDT transactions. and Tether’s established track record was overlooked. It’s about working with global law enforcement agencies.
Tether noted that the report should also address how centralized stablecoins such as: USDT can help combat financial crime. The company reiterated its willingness to participate in these efforts. Over $300 million USDT frozen due to illegal activitiesIt includes a major freeze related to the U.S. investigation into human trafficking rings in Southeast Asia in November 2023.
Moreover, Tether Efforts to cooperate with law enforcement were emphasized. It is claimed that this partnership to track USDT tokens will allow for more effective monitoring than the traditional banking system, which has historically been a channel for large-scale money laundering.
Tether called for greater cooperation. We are increasing understanding of blockchain technology among the global community and the United Nations to better combat financial crime.
Tether’s rebuttal to the UNODC report highlights important discourse in the cryptocurrency sector and highlights the need for nuanced understanding and regulation of digital currencies. This highlights the delicate balance between fostering innovation and ensuring financial security in the evolving global financial environment.
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