Partners with Chainalysis for Enhanced Transaction Surveillance
  • As regulators put pressure on stablecoin issuers, Tether has partnered with Chainalysis to monitor transactions in the market-leading USDT stablecoin in the secondary market.
  • Chainalysis is expected to sound the alarm on any transfers to sanctioned organizations, terrorist organizations, hacker groups, or other illegal activities.

Criminal activity in the crypto world is only a small part of the picture, but as global regulators increase their scrutiny of cryptocurrencies, stakeholders are still investing billions of dollars into fighting crime. Masu. The latest move comes from Tether, the company behind the USDT stablecoin, which has partnered with Chainaracy to monitor USDT transactions.

Tether announced the partnership this week, revealing that the New York-based blockchain analytics firm will develop a customizable solution for monitoring stablecoin secondary market activity. This includes any transaction using USDT that does not involve Tether, which is basically 99.9% of stablecoin activity.

The Chainalies solution will enable Tether to “systematically monitor transactions and enhance understanding and monitoring of the USDT market,” the company said. Said In that announcement. The company added:

It also serves as a proactive source of information for Tether compliance professionals and investigators to identify wallets that may pose a risk or that may be associated with illegal or sanctioned addresses. You will be able to identify it.

Why the partnership with Chainalysis is important for Tether

USDT remains the largest stablecoin on the market, with a market capitalization of $110.94 billion, more than three times larger than second-place USDC. It has also been consistently ranked number one for trading volume over the years. For example, his USDT trading volume in the past day was $35.537 billion, twice as much as second place Bitcoin and seven times as much as USDC.

But it has been under regulatory scrutiny for years due to all sorts of allegations. These range from allegations of Bitcoin manipulation by Tether to misleading statements about whether the stablecoin is backed 1:1 by the US dollar. However, the most significant risk of stablecoins is that they can be used for crime. The US government does not take these charges lightly, as several lawsuits against crypto giants including Binance and BitMEX demonstrate.

It is not news that stablecoins are used for crimes.according to report According to Chainalysis, stablecoins accounted for 70% of all crypto fraud last year and 83% of crypto sent to sanctioned entities. The report added that sanctions evasion led to stablecoin trading volume of $24.2 billion in 2022-2023.

“Stablecoins are an interesting strategy if you are in a jurisdiction where you cannot access the US dollar due to sanctions,” explains Andrew Fierman, head of sanctions strategy at the analytics firm.

As reported by CNF, CZ is currently serving a four-month prison sentence, with Sam Bankman Freed and others also being sentenced, making it critical that Tether comply with the new era of regulatory oversight. ing.

This partnership is essential not only for Tether and USDT, but for the entire cryptocurrency industry. Stablecoins make up a significant portion of all cryptocurrency transactions.

Meanwhile, the crypto market traded flat over the weekend, with the overall market capitalization slightly increasing from Friday’s $2.225 trillion. $2.35 trillion At press time. Bitcoin is trading at $63,745, recovering from the blow from the CZ ruling that sent it down to $56,000 earlier in the week.


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