- The company has highlighted its commitment to combat illegal crypto usage.
- One of the plans is the implementation of proper KYC and AML procedures.
Tether has publicly shared letters addressed to the US Congress, highlighting insight against Illicit crypto usage in the crypto space. Addressed to the Senate Committee on Banking, Housing, and Urban Affairs and the US House Financial Services Committee, these letters offered a detailed insight into Tether’s stance against illicit crypto use.
Paolo Ardoino, the CEO of Tether, said: “Tether is grateful for the opportunity to address the concerns raised by US lawmakers, and we are committed to continuing Tether’s close work with law enforcement in the US and globally. Tether seeks to be a world-class partner to the US as we continue to assist law enforcement and expand dollar hegemony globally.”
Money Laundering And Tether
One of the initiatives outlined, according to the statement shared by the company on its website, is the implementation of stringent Anti-Money Laundering (AML) and Know Your Customer (KYC) policies and standards.
Furthermore, Tether has committed to aligning with the Office of Foreign Assets Control’s Specially Designated Nationals List as a step to extend sanctions controls, ensuring comprehensive security measures in the secondary market.
See Related: Cryptocurrency Statistics And Insights (2022)
The stablecoin issuer has also partnered with law enforcement agencies, including the US Department of Justice and the US Secret Service, and ongoing efforts to collaborate with the Federal Bureau of Investigation. These partnerships aim to combat illegal activities, aid in the recovery of funds, and establish new industry benchmarks.
Mounting Regulatory Scrutiny
Recently, Tether and Bitfinex decided to stop resisting a New York Freedom of Information Law (FOIL) request, marking a pivotal shift in their stance towards regulatory transparency, The Distributed reported.
The FOIL request, led by journalists, including Zeke Faux from Bloomberg Businessweek, sought crucial insights into Tether’s reserves backing its USDT stablecoin. This step happened amid regulatory probes, including allegations by the Commodity Futures Trading Commission regarding misleading statements about Tether’s reserves.
Tether’s previous attempt to block a similar FOIL request, delving into the adequacy of reserves backing USDT between mid-2019 and early 2021, resulted in a settlement following an investigation.
