Tether, the issuer of the USDT stablecoin, says they are disappointed in the UN’s assessment that singles out USDT “highlighting its involvement in illicit activity while ignoring its role in helping developing economies in emerging markets, completely neglected by the global financial world simply because servicing such communities would be unprofitable for them.”
The firm noted in a blog post that the “monitoring of Tether tokens through our collaboration with global law enforcement including the DOJ, FBI, and USSS (which was recently onboarded on the Tether platform) ensures unparalleled monitoring, surpassing traditional banking systems that for decades have been the vessel for laundering substantial sums proven by the fines that have been levied on them.”
Tether tokens, using public blockchains, make it possible “to meticulously track every transaction, making it an impractical choice for illicit activities.”
According to Tether, this is evident in their “freezing of more than US$300 million within the last few months, showcasing our commitment to combating the criminal use of cryptocurrencies.”
Implementing security measures, “including developing together with Chainalysis, a tool for monitoring secondary markets, highlights our dedication to community protection.”
Tether claims tat the UN’s analysis “ignores the traceability of Tether tokens and the proven record Tether has of collaborating with law enforcement. Rather than focusing solely on risks the UN should also discuss how centralized stablecoins can improve anti-financial crime efforts. There are yet many more opportunities to work to stop financial crimes on blockchains and it behooves the UN to work with the industry to understand and execute modern strategies to fight financial crime. Tether will happily collaborate on such matters.”
According to Tether, the absence of efforts “to comprehend its fundamentals raises alarms about achieving the intended goals. Encouraging a proactive approach to learning and being educated on blockchain is essential for fostering a more informed and productive environment.”
Tether says they believe the UN could “benefit from an expanded understanding of blockchain technology and the immense improvements it offers with respect to fighting financial crime. We encourage a proactive learning approach and believe it is vital for a more informed environment, and are happy to support the UN in gaining more understanding.”
Tether says that they also “extend an invitation to the UN to engage in collaborative dialogue, echoing successful collaborations with dozens of global law enforcement agencies including the DOJ and the USSS.”
Tether further claims that they “remain steadfast in promoting transparency and accountability in digital currencies.”