Tether Implements Chainalysis Surveillance to Tackle Illicit Crypto

Tether, the issuer of stablecoin USDT, has entered into a partnership with blockchain data platform Chainalysis. This partnership aims to strengthen the monitoring of transactions using Tether tokens, with a particular focus on detecting and mitigating risks related to illegal activities and sanctions violations.

This action is part of Tether’s consistent efforts to improve its compliance measures in response to increasing regulatory pressure in each country.

With the new system developed by Chainalysis, tether To monitor, track and analyze transactions on secondary markets where USDT is traded. This effort leverages modern means to manage sanctions and detect illicit transfers to identify potentially risky wallets and transactions that are associated with sanctions lists or that may be related to money laundering or terrorist financing. is intended to detect.

Tether regulatory challenges and oversight

Tether’s move to improve its transaction monitoring system comes amid increasing pressure on stablecoin operators from regulators around the world. Issues have been raised regarding the possibility of bypassing using USDT international sanctions Covers a variety of illegal financial activities.

For example, there are allegations that Venezuela’s national oil company used it to circumvent the USDT. US sanctions. Additionally, a United Nations report released earlier this year revealed that USDT is widely employed in underground banking and money laundering across East and Southeast Asia.

In response to these challenges, Tether has chosen to proactively strengthen its compliance framework. Through the use of Chainaracy’s technology, Tether seeks to maintain the suitability of platforms under its control, as such systems can be used to carry out illegal activities. Tether therefore supports a wide range of industry activities aimed at maintaining the integrity of the cryptocurrency ecosystem.

Monitoring tools and their features

This partnership will provide a set of advanced tools to analyze USDT flows beyond basic market transactions managed by Tether. These tools consist of sanctions monitoring and fraudulent transfer detection capabilities. The former provides an extensive list of transactions related to sanctioned entities, while the latter helps spot suspicious financial flows, especially those that may be related to terrorist activities. Through this integration, Tether aims to proactively detect and manage risks for high-risk wallets and transactions.

Another important part of the system is the max wallet analysis that allows you to explore the major USDT holders and their trading patterns. Such analysis helps find the distribution and movement patterns of large amounts of USDT, another feature important for detecting anomalies and potential threats.

CEO of Tether, Paolo Ardoino, emphasized the importance of this cooperation as an important move in the direction of absence and transparency in the cryptocurrency market. The proactive steps taken by Tether, which currently include collaborative partnerships with 124 law enforcement agencies across 43 jurisdictions, demonstrate the company’s ambition to become a leading player relying on strict compliance and monitoring standards. .

Meanwhile, Tether also announced a significant improvement in its economic performance with net income of $4.52 billion. Q1 2024. This success is attributed to the company’s strong business operations and targeted investments across various areas such as AI, renewable energy, and blockchain technology.

Also read: Bitcoin-focused Wasabi wallet developer zkSNACKs leaves US

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