Tether’s Bold Compliance Move: A Letter to U.S. Lawmakers

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In an unprecedented move, stablecoin giant Tether has written a letter to the U.S. Senate and House of Representatives, showcasing its dedication to adhering to legal and regulatory norms, particularly those set by the Office of Foreign Assets Control (OFAC). 

Collaborative Efforts with U.S. Agencies

The CEO of Tether, Paolo Ardoino, has been taking notable steps to align the company’s operations with U.S. regulations. A significant move in this direction is the integration of U.S. Secret Service protocols into the platform, with similar initiatives involving the FBI currently underway. Ardoino has made it clear that Tether has disabled its tokens in wallets that are on the OFAC’s sanction list, illustrating a strong stance against any potential misuse of its digital currency.

Tether’s track record is impressive, having assisted in freezing over 326 wallets, which controlled approximately 435 million USDT.  In its letter, which was addressed directly to pro-crypto lawmakers Cynthia Lummis and French Hill, Tether explained that it has implemented a comprehensive compliance framework, including robust Know Your Customer (KYC) and Anti-Money Laundering (AML) protocols. 

The company’s compliance department boasts experienced professionals from international financial institutions. Moreover, Tether has engaged top-tier technology consultants to fortify its compliance efforts further.

Ensuring Integrity in Transactions

Tether’s commitment to legal compliance is also evident in its transaction monitoring processes, says the letter. The company uses state-of-the-art surveillance tools to monitor client activities, particularly those involved in the creation and redemption of USDT. 

The use of Chainalysis’ Reactor tool and receiving risk reports exemplify Tether’s dedication to identifying and mitigating risks associated with digital currency transactions. This vigilant monitoring enables the company to identify and report suspicious activities effectively, thus playing a crucial role in combating potential financial crimes and terrorist financing.

Tether further stated that its cooperation with law enforcement extends globally. The company has been actively involved in assisting law enforcement agencies across 19 jurisdictions in their investigations related to illicit activities, including terrorist financing. These efforts have led to the freezing of significant amounts of USDT, particularly those linked to thefts and hacks.