Tether, the largest issuer of stablecoin USDT, has implemented a new policy to freeze crypto wallets associated with individuals and entities sanctioned by the US Treasury’s Office of Foreign Asset Control (OFAC). This move aims to strengthen the positive usage of stablecoin technology and promote a safer stablecoin ecosystem.
An analysis of the Ethereum blockchain reveals that Tether has limited usage to 161 Ethereum addresses, with the majority of these wallets now showing zero balances for USDT. However, it is unclear whether these addresses held Tether tokens before the freeze was imposed.
The crackdown on sanctions against Russia and Iran has accelerated the integration of cryptocurrencies with traditional finance. Crypto firms are under pressure to bolster compliance and prevent usage by sanctioned parties. Tether’s decision to freeze wallets aligns with their commitment to maintaining high safety standards and working closely with global law enforcement and regulators.
Stablecoins like USDT have faced scrutiny due to their extensive use on major exchanges. By freezing wallets associated with sanctioned individuals and entities, Tether aims to curb potential misuse of its tokens and mitigate reputational and regulatory risks.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | Middle East |
| Countries | |
| Sentiment | very positive |
| Relevance Score | 1 |
| People | Paolo Ardoino |
| Companies | Binance, Tether, Specially Designated Nationals (SDN) List, US Treasury’s Office of Foreign Asset Control (OFAC), Office of Foreign Assets Control’s (OFAC), Ethereum |
| Currencies | Tether, US Dollar, Ethereum |
| Securities | None |
