Key takeaways:
- Stablecoin issuer Tether stated that it is taking a voluntary approach to wallet freezing as part of its ongoing efforts to collaborate with regulatory bodies.
- The list includes both individuals and businesses that are owned or controlled by sanctioned nations.
In a blog post published on December 9, stablecoin issuer Tether stated that it is taking a voluntary approach to wallet freezing as part of its ongoing efforts to collaborate with law enforcement and regulatory bodies.
Since December 1st, Tether has been providing controls to freeze transactions related to sanctioned individuals on the Specially Designated Nationals (SDN) List maintained by the US Office of Foreign Assets Control (OFAC).
The list includes both individuals and businesses that are owned or controlled by sanctioned nations.
Tether claims that the strategy would strengthen current security procedures and is an initiative to collaborate even more closely with international regulators and law enforcement organizations.
The list has been used by the US Department of Treasury to stop cryptocurrency transactions that might be linked to criminal activity, such as financing terrorism and the unapproved sale of fentanyl.
Tether has already frozen wallets that were previously included to the SDN List, which goes against the company’s prior stances on the subject. Since 2019, the OFAC claims that people and criminal groups have laundered over $7 billion in crypto using Tornado Cash. Paolo Ardoino, CEO of Tether, stated:
“By executing voluntary wallet address freezing of new additions to the SDN List and freezing previously added addresses, we will be able to further strengthen the positive usage of stablecoin technology and promote a safer stablecoin ecosystem for all users,”
The Hong Kong-based corporation is responsible for the stablecoin Tether, whose market capitalization surged to record highs during the US government’s recent crackdown on cryptocurrency companies. With a market valuation of $90 billion at the moment, it is clear that there is a significant market for the stablecoin, which now accounts for around 70% of the total.
