Tether Maintains A New Wallet-Freezing Policy

12/11/2023 3:36:54 PM

(MENAFN- eTrendy Stock) Tether, a prominent stablecoin issuer, has taken a significant step toward bolstering cooperation with law enforcement and regulatory bodies. This strategic move is marked by introducing a voluntary wallet-freezing policy, as revealed in a recent blog post dated December 9.

Tether's Proactive Stance on market Controls

Beginning December 1, Tether has proactively offered secondary market controls. This initiative mainly focuses on freezing activities linked to individuals and entities on the United States Office of Foreign Assets Control (OFAC) Specially Designated Nationals (SDN) List. The SDN List includes companies and individuals controlled or owned by countries under sanctions .

Tether's latest policy is not merely an isolated measure but a supplement to its existing security protocols. It represents a forward-thinking approach to engage more intimately with global regulators and law enforcement. This effort underscores Tether's commitment to maintaining a secure and compliant stablecoin ecosystem.

Utilizing the SDN List, the U.S. Department of the Treasury has been pivotal in curtailing cryptocurrency transactions potentially linked to illegal activities. These activities range from funding terrorism to the unauthorized distribution of substances like fentanyl. Tether's alignment with these efforts further solidifies its position as a responsible player in the crypto space.

Tether's Shift in Policy Regarding Wallet Freezes

A notable shift in Tether's stance is evident in its recent actions. Previously, Tether did not proactively freeze wallets associated with sanctioned entities, like Tornado Cash addresses, unless specifically directed by law enforcement. That was notably stated in August 2022. However, the company has adjusted its approach, freezing wallets already on the SDN List. This move aligns Tether more closely with regulatory expectations and practices.

Paolo Ardoino, Tether's CEO, emphasized the importance of these measures. By voluntarily freezing wallet addresses newly added to the SDN List and those previously listed, Tether aims to fortify the positive use of stablecoin technology. This initiative is crucial in promoting a safer and more secure environment for all stablecoin users.

Tether's latest policy demonstrates a balanced approach to regulation and innovation in cryptocurrency. By aligning with regulatory bodies and law enforcement, Tether enhances the security of its stablecoin offerings. Moreover, it sets a standard for responsible practices in the broader crypto industry.

MENAFN11122023007158015398ID1107574453

Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.