Tether Unveils New Wallet-Freezing Rules
Tether has been working with regulatory agencies and law enforcement agencies hailing from various sectors to implement illegal activity controls. Recently, Tether has introduced sanctioned controls for secondary markets as part of the collaboration with United States regulators.
Tether, the stablecoin issuing firm, is working on a voluntary wallet-freezing policy. As per a new blogpost posted by Tether, the firm shared details concerning the new policy updates.
The blog post noted that this supplement will add to the current security protocols in a proactive effort to work closely with global regulators and law enforcement agencies from various jurisdictions.
Tether Issues New Policy for OFAC-Sanctioned Persons
Tether has been working on introducing secondary market controls since 1st December. These sanctions will enable freeze mode for any activities associated with sanctioned investors based on specifications issued by Office of Foreign Assets Control (OFAC).
The OFAC has issued a Specially Designated List or SDN to add the particulars of blacklisted or sanctioned wallet addresses. These wallets addresses can hail from sanctioned nations and/or individuals around the globe.
US Treasury Department is Working with OFAC to Contain Illegal Crypto Trading Activities
The Treasury Department of the US also has access to the SDN list and uses this information to crack down against illegal crypto trading activities. These activities include issues such as terrorist funding and drug trafficking rings distributing harmful substances as fentanyl etc.
This is not the first time that Tether has worked with OFAC; the stablecoin issuer also froze addresses added to the SDN list. However, USDT changed its previous stance on the matter before proceeding with the current sanctions.
Last year in August, Tether announced that it would apply a proactive approach to freeze popular digital currency mixer Tornado Cash. The frozen accounts were based on sanctioned address nominations.
OFAC officials alleged that individuals and criminal firms are using Tornado Cash addresses to launder more than $7 billion in digital assets since 2019.
Tether to Halt Suspicious Addresses
Paolo Ardoino, the newly appointed CEO of Tether, recently noted that the stablecoin has enabled voluntary address freezing based on the SDN List. In this manner, the platform has commenced halting suspicious addresses to ensure positive utility of stablecoins tech and promotion of safe stablecoin environment for all cryptocurrency investors.
The firm is based in Hong Kong and continued as one of the top stablecoin projects in terms of market capitalization. The firm also faced regulatory crackdown from regulators in the United States however USDT token managed to record an ATH of $90 billion at press time. The current change indicates a strong market demand for the stablecoin accounting for 70% of the total stablecoin investments.
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