Tether increases surveillance of USDT transactions on secondary markets

• Tether, the issuer of the USDT stablecoin, has partnered with blockchain surveillance company Chainalysis to monitor its token transactions on secondary markets.
• This move is aimed at improving international sanctions compliance and detecting illicit transfers linked to activities such as terrorist financing.
• Chainalysis will provide several tools to Tether, including Sanctions Monitoring, Illicit Transfer Detector, Categorization, and Largest Wallet Analysis.

Tether aims to enhance transparency and security in cryptocurrency transactions through its partnership with Chainalysis, a move that comes amidst increased scrutiny from global regulators.

Enhancing Compliance and Security

Tether’s collaboration with Chainalysis is set to bolster the security and transparency of its transactions. The blockchain surveillance company will provide tools that can identify crypto wallets associated with illicit activities or sanctioned addresses. This is a significant step in Tether’s ongoing commitment to establishing transparency and security within the cryptocurrency industry, as stated by Tether’s CEO Paolo Ardoino.

Increased Scrutiny from Regulators

The partnership comes at a time when Tether faces heightened scrutiny from global regulators and policymakers over its USDT and its alleged role in bypassing international sanctions and illicit finance. Criticisms have been leveled against Tether for its purported involvement in criminal activities and terrorism financing. U.S. lawmakers have called for investigations into Tether’s compliance with applicable sanctions laws, particularly in relation to the Hamas attacks on Israel in October.

Chainalysis Tools for Tether

Chainalysis will offer several tools to Tether, including Sanctions Monitoring, Illicit Transfer Detector, Categorization, and Largest Wallet Analysis. These tools will provide insights into USDT transactions and identify holders potentially involved in illicit activities. The partnership is a strategic move by Tether to ensure compliance with international sanctions and to detect and deter illicit transfers.

Conclusion

In conclusion, Tether’s partnership with Chainalysis is a significant step towards enhancing the transparency and security of its transactions. Amidst increased scrutiny from global regulators, this move signifies Tether’s commitment to compliance and the prevention of illicit activities. As the leading stablecoin, Tether’s actions set a precedent for other cryptocurrencies, emphasizing the importance of transparency and compliance in the rapidly evolving digital asset landscape.