Tether, which claims to be the largest company in the cryptocurrency industry, announced its latest initiative aimed “at safeguarding the cryptocurrency ecosystem.”
On December 1, 2023, the company made the decision to “initiate a new voluntary wallet-freezing policy designed to combat activity connected with Sanctioned persons on the Office of Foreign Assets Control (OFAC) Specially Designated Nationals (SDN) List.”
As part of its continued dedication to fostering a secure and reliable environment for users worldwide, Tether is taking these further proactive steps “by implementing this policy to supplement existing security protocols.”
Tether will now offer “on the secondary market, the Sanctions controls it already enforces for wallets on its platform.”
This initiative is a proactive effort “to work even more closely with global regulators and law enforcement agencies in safeguarding stablecoin usage.”
In adherence to this policy, Tether has “taken additional precautionary measures, including freezing wallets previously added to the SDN List.”
The primary objective behind this approach is to “proactively prevent any potential misuse of Tether tokens and enhance security measures.”
Paolo Ardoino, CEO of Tether, said:
“This strategic decision aligns with our unwavering commitment to maintaining the highest standards of safety for our global ecosystem and expanding our close working relationship with global law enforcement and regulators. By executing voluntary wallet address freezing of new additions to the SDN List and freezing previously added addresses, we will be able to further strengthen the positive usage of stablecoin technology and promote a safer stablecoin ecosystem for all users.”
Tether remains steadfast in its mission to “prioritize user security and looks forward to the positive impact this policy will bring to its growing community, raising the standard yet again for the entire industry.”
During the past few years, stablecoins have become more widely adopted across the globe. They can be useful in areas where the national fiat currency is unable to serve as an effective medium of exchange, store of value, or unit of account. Although they are in their developmental stages, and have not fully matured, stablecoins do provide hope for many consumers who have been left out of the formal economy and are unable to easily access traditional financial services.