Tether, the stablecoin issuer, has announced a new policy aimed at strengthening security within its ecosystem. The company has initiated a voluntary wallet-freezing policy, allowing it to freeze activity connected with individuals and companies on the United States Office of Foreign Assets Control (OFAC) Specially Designated Nationals (SDN) List. This move is seen as a proactive effort by Tether to cooperate with global regulators and law enforcement agencies.
The U.S. Department of the Treasury has been using the SDN List to monitor and curb crypto transactions that may be linked to illegal activities, such as funding terrorism and unauthorized distribution of fentanyl. Tether’s decision to freeze wallets on the SDN List contradicts its previous stance on the matter. In August 2022, the company had announced that it would not proactively freeze sanctioned Tornado Cash addresses unless instructed by law enforcement.
Tether’s CEO, Paolo Ardoino, stated that the voluntary wallet freezing policy will help strengthen the positive usage of stablecoin technology and promote a safer stablecoin ecosystem for all users. Tether, based in Hong Kong, is the issuer of the stablecoin Tether USDT, which currently holds nearly 70% of the market with a market capitalization of $90 billion.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | Global |
| Countries | ðŸ‡ðŸ‡° 🇺🇸 |
| Sentiment | neutral |
| Relevance Score | 1 |
| People | Paolo Ardoino |
| Companies | Tether, U.S. Department of the Treasury, Specially Designated Nationals (SDN) List, United States Office of Foreign Assets Control (OFAC), Tornado Cash |
| Currencies | Tether, US Dollar |
| Securities | None |
