Stablecoin Tether steps up monitoring in bid to combat illicit finance

(c) Copyright Thomson Reuters 2024

Written by Elizabeth Howcroft
LONDON (Reuters) – Tether, the world’s largest stablecoin, is increasing oversight of how its tokens are used in broader crypto markets and payments to combat illicit finance. said in a statement Thursday.

Tether, a cryptocurrency pegged to the US dollar, and blockchain analytics firm Chainalysis have launched a new tool to identify transactions related to sanctioned entities and analyze the activities of the token’s primary holders, Tether said. Stated.

Reuters reported last month that Venezuela’s state oil company PDVSA plans to increase its use of Tether to export crude oil and fuel as the US reimposes oil sanctions.

The Wall Street Journal reported last month that Russian intermediaries were using Tether to procure weapons components for drones and other military equipment to circumvent Western sanctions.

A Tether spokesperson did not immediately respond to a Reuters request for comment asking whether there was a connection between Thursday’s announcement and the Reuters report on PDVSA. Tether’s announcement did not mention either report.

Tether has previously said that any activity using cryptocurrencies can be tracked online, and that “any asset may be seized and any criminal committed may be arrested.”

Tether has grown rapidly in recent years, reaching $100 billion in circulation in March. Tether CEO Paolo Ardoino told Reuters last month that the growth was driven by its use as a substitute for the dollar in emerging markets.

Stablecoins can be used as a form of payment when trading on cryptocurrency exchanges, as well as in exchange for other tokens such as Bitcoin.

Tether, registered in Hong Kong and owned by a company registered in the British Virgin Islands, can freeze its own tokens and previously said it did so in response to a request from law enforcement. .

(Reporting by Elizabeth Howcroft; Editing by Rosalba O’Brien)

Disclaimer: This report was auto-generated from Reuters News Service. ThePrint assumes no responsibility for its content.

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