Tether expressed disappointment with the UN's assessment of the use of the USDT stablecoin in illegal activities and ignoring the asset's role in developing economies.
Tether Challenges UN Report and Calls for Blockchain Education
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— Tether (@Tether_to) January 15, 2024
Previously, the UN Office on Drugs and Crime noted in a report that “stablecoin” is increasingly being used in romance scams and pig butchering schemes, as well as in the online casino black market in Southeast Asia.
“Organized crime has effectively created a parallel banking system using new technologies, and the proliferation of poorly or completely unregulated online casinos along with cryptocurrency has strengthened the region’s criminal ecosystem,” the international organization said.
Tether indicated that UN experts did not take into account the company’s cooperation with authorities and law enforcement around the world. According to the USDT issuer, it provides “unprecedented monitoring that exceeds traditional banking systems.”
“Tether tokens, which use public blockchains, allow each transaction to be closely monitored, making them an impractical choice for illegal activity,” the company emphasized.
They recalled that in recent months alone, the company has blocked more than $300 million in USDT. This demonstrates Tether’s commitment to combating the illegal use of cryptocurrencies, the firm emphasized.
“Instead of focusing solely on risks, the UN should also discuss how centralized stablecoins can support efforts to combat financial crime,” the statement said.
Tether believes that the organization’s specialists need a deeper understanding of blockchain technology and have expressed their readiness to support the organization in this direction.
“We also invite the UN to engage in joint dialogue, replicating the successful collaboration with dozens of global law enforcement agencies, including the US Department of Justice and USSS. Tether continues to promote transparency and accountability in the digital currency industry,” the company said.
Tether specialists also noted the role of the stablecoin in supporting the financial systems of developing economies. According to them, it simply does not seem economically viable for traditional structures.
Let us recall that in December 2023 the company announced the start of a new policy to freeze wallets whose owners are under sanctions OFAC.
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