- Tether claims that stablecoins have been vital in the innovation and construction processes of decentralized financial systems in recent years.
- The company lamented the current limitations to expanding the coverage and inclusion of broad swathes of society that have been forgotten or abandoned by traditional banking systems.
- The USDT issuer underlines that it continues to support authorities around the world in preventing criminal activity from taking place on the blockchain network.
Tether Ltd., the issuer of the world’s largest stablecoin by market capitalization, has stated that, although it has so far supported all investigative proceedings by United States authorities, it wishes to advocate for greater financial freedom and inclusion.
The company claims that stablecoins have been a powerful tool for promoting financial inclusion around the world, and emphasized that, thanks to them, billions of people around the world have gained access to “dependable monetary and financial services” they would otherwise have been unable to employ.
Likewise, it highlighted the role of stable currencies in the innovation and construction processes of decentralized financial systems over the last five years. "Stablecoins open up previously closed financial markets and provide tools for global financial freedom," the company stated in a blog post.
Support in the Fight Against Crime and Terrorism
The company made reference to its “close collaboration” with law enforcement agencies in a number of countries in supporting investigations related to the use of cryptocurrencies for criminal activities, and to prevent “crime, terrorism, and critical threats to national security.”
Tether hinted that it has helped freeze just over $360 million in assets, of which $101 million has since either been reissued, or is arranged for reissue. In fact, just this week the company froze three addresses on the Ethereum (ETH) blockchain, which contained deposits totaling 8.2 million USDT.
Tether explained that it is capable of tracking potentially suspicious USDT movements, and freezing cryptocurrency tokens suspected of being used by criminals to carry out illegal operations. In this way, the company is able to assist with law enforcement procedures and support related investigations.
Praise and Demands
The company behind the USDT went on to say that cryptocurrency trading platforms, as well as several prosecutors from the U.S. Department of Justice have praised the company for its compliance and proactive approach to stopping criminal activity in recent times. Tether cited its involvement in high-profile cases such as hacks and the piracy of encryption platforms and protocols such as the Poly Network, in which they promptly froze $33 million in USDT.
The company further highlighted its response to the attack suffered by the Binance Smart Chain last week, in which attackers siphoned $570 million. Tether underlined that it responded swiftly to the attack, freezing the assets in the attacker’s USDT wallet.
The company now insists that the regulatory bodies of countries around the world must expand upon financial freedoms in order to facilitate the inclusion of broader sectors of society into the payments system. “This is even more critical where Tether is bringing financial freedom to communities and areas that banks have forgotten or gave up,” it said.
On the Flipside
- Despite its support for government security agencies around the world, the transparency of Tether’s financial balances continues to be a matter under question.
- The company has promised to keep its portfolio of funds backing USDT up to date, as well as to reduce its commercial paper holdings, which currently stand at approximately $50 million.
Why You Should Care
- Thanks to its presence on the Bitcoin and Ethereum blockchains, USDT trading accounts for close to 80% of all Bitcoin transactions.
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