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Tether’s Pledge to Uphold Cryptocurrency Integrity and Security

Tether Partners with U.S. Law Enforcement Agencies to Combat Illicit Use of Stablecoins

In a significant move towards enhancing security and regulatory compliance within the cryptocurrency ecosystem, Tether, the leading cryptocurrency firm, has released public letters outlining its commitment to fighting illicit use of stablecoins. The letters, addressed to U.S. Senate Committee on Banking, Housing, and Urban Affairs members and the U.S. House Financial Services Committee, underscore Tether’s determination to collaborate closely with law enforcement agencies.

Tether has long been recognised as a pioneer in the cryptocurrency world, having introduced the industry’s first, most enormous, most transparent, and liquid stablecoin. Its USDT token plays a pivotal role in stabilising the volatile crypto market, effectively acting as a digital counterpart to the U.S. dollar. The company’s recent letters reiterate its dedication to building a robust and sustainable infrastructure for the cryptocurrency ecosystem.

In a letter dated November 16th, Tether expounds upon its Anti-Money Laundering (AML) and Know Your Customer (KYC) policies and standards. The company proudly outlines its proactive cooperation with law enforcement agencies globally, including prominent U.S. authorities such as the Department of Justice and the Secret Service. Tether’s willingness to assist in the fight against illegal activities and fund recovery is evident from its partnerships with these agencies.

Perhaps the most remarkable initiative highlighted in the December 15th letter is Tether’s introduction of a wallet-freezing policy on December 1st, 2023. This groundbreaking move is designed to enhance security and compliance within the cryptocurrency space. By actively freezing wallets associated with the Office of Foreign Assets Control (OFAC) Specially Designated Nationals (SDN) List, Tether aims to safeguard its users and uphold the integrity of the stablecoin ecosystem.

The key takeaways from Tether’s recent communication with U.S. lawmakers are:

  1. Enhanced Security: Tether’s wallet-freezing policy sets a new industry standard, demonstrating its commitment to safeguarding users’ assets.
  2. Collaboration with Law Enforcement: Tether actively cooperates with esteemed law enforcement agencies such as the U.S. Department of Justice and the Secret Service to combat illicit activities and aid in fund recovery.
  3. Regulatory Compliance: The company aligns with the OFAC SDN List, extending sanctions controls to the secondary market and ensuring comprehensive security measures.
  4. Industry Leadership: Tether aspires to establish its security, regulatory compliance, and law enforcement support practices as industry norms, setting a precedent for others.

Tether‘s CEO, Paolo Ardoino, expressed gratitude for the opportunity to address concerns raised by U.S. lawmakers. He affirmed Tether’s commitment to continuing its close collaboration with law enforcement in the U.S. and globally. Ardoino stated, “Tether seeks to be a world-class partner to the U.S. as we continue to assist law enforcement and expand dollar hegemony globally.”

In summary, Tether’s recent public disclosures and commitments underscore its dedication to the security and integrity of the cryptocurrency industry. By actively partnering with law enforcement agencies and implementing innovative security measures, Tether aims to set a gold standard for the entire crypto ecosystem, ensuring its long-term sustainability and trustworthiness.

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