Tether, the stablecoin issuer, has partnered with Chainalysis, a blockchain data platform, to enhance the monitoring of Tether token transactions. The objective of this collaboration is to identify and mitigate risks associated with illicit activities and sanctions breaches. Tether aims to strengthen its compliance procedures in response to increasing regulatory pressure worldwide.
Chainalysis has developed a new technology that Tether can utilize to track USDT trades on secondary marketplaces and assess them. The primary goal of this initiative is to detect suspicious wallets and transactions that may be linked to the sanctions list, money laundering, or terrorist funding. By utilizing existing tools for sanctions management and illegal transfer detection, Tether aims to ensure the integrity of its platform.
Tether’s decision to improve its compliance structure is driven by concerns regarding the potential use of USDT to evade global sanctions and facilitate illegal financial operations. Venezuela’s state-owned oil business has been accused of using USDT to bypass U.S. sanctions, and United Nations research has highlighted the common use of USDT in underground banking and money laundering in Southeast Asia and East Asia.
By leveraging Chainalysis’s technology, Tether aims to maintain a platform that is suitable and secure, as any platform under its control could be exploited for illicit purposes. Tether supports industry-wide efforts to safeguard the cryptocurrency ecosystem.
In other news, the Total Value Locked (TVL) of the Telegram-linked TON Ecosystem has skyrocketed by 1182% in the first quarter of 2024.
