The digital asset industry is dealing with every kind of complication globally and now the United Nations (UN) reportedly issued a warning against the biggest dollar pecked stablecoin, USDT. However, its issuer Tether expressed disappointment over the recent UN assessment.
Tether refutes UN’s claim
In a blog, Tether argues that the UN report overlooks its crucial role in supporting developing economies including emerging markets. It mentioned that an aspect often ignored by the mainstream financial sector due to perceived unprofitability. The company pointed out its commitment to monitoring Tether tokens by joining hands with global law enforcement agencies. This includes the DOJ, FBI, and recently, USSS.
As per Tether, its monitoring processes which are conducted on public blockchains have surpassed traditional banking systems known for money laundering. This is evidenced by substantial fines imposed over the years. It added that the transparency of Tether tokens enables meticulous transaction tracking. This step had positioned them as an impractical choice for illicit activities.
Tether claims to have frozen more than $300 million in recent months in the actions to combat the criminal use of cryptos. Somehow, it pointed out that partnering with security firms like Chainalysis shows its commitment to community protection.
What’s next?
As reported, the United Nations has issued a warning that Tether has become a prominent payment method for money launderers and fraudsters in Southeast Asia. The UN’s Office on Drugs and Crime stated that the USDT is central to a rising trend of scams.
It added that these schemes often involve creating false romantic connections to gain victims’ trust and then persuading them to transfer money. This tactic is known as “pig butchering.” Jeremy Douglas from the UN’s Office on Drugs and Crime highlighted the creation of a parallel banking system by organized crime.
Tether pointed out that the UN’s analysis ignored the traceability of Tether tokens and its proven record of collaboration with law enforcement. It suggested a broader discussion on how centralized stablecoins including USDT. It can enhance efforts to combat financial crime rather than focusing solely on associated risks.
USDT issuer seems to be willing to work with the UN and the broader industry to develop modern strategies for fighting financial crime.
Tether’s USDT is the biggest stablecoin in the industry. USDT holds a market cap of more than $95 billion with a circulating supply of 95.12 billion.
