Tether, the issuer of the largest stablecoin USDT by capitalization, announced implementation of a USDT transaction monitoring system in collaboration with Chainalysis, a leading company in the field of blockchain analytics, writes RBC Crypto.
Tether will track USDT transactions on the secondary market using the power of Chainalysis. The secondary market refers to any transactions with USDT after the release of tokens.
Chainalysis' tools will give Tether “a deeper degree of oversight of the USDT market.” The key components of the new system are monitoring of sanctioned wallets and categorization of stablecoin holders, making it possible to identify users of exchanges or trading platforms on the darknet.
Tether will analyze activity on large balance wallets and identify transactions potentially related to illegal activity, terrorist financing, or used to circumvent international sanctions.
In an effort to comply with the requirements of American regulators, Tether is carefully listening to signals emanating from US authorities. In March, the company announced a policy of proactively blocking wallets found to be using the USDT stablecoin to circumvent sanctions imposed on oil exports from Venezuela.
In December 2023, Tether froze 41 cryptocurrency wallets that were allegedly associated with individuals designated by the US Treasury Department's Office of Foreign Assets Control (OFAC).
Last year, the company assisted the Department of Justice, the US Secret Service and the Federal Bureau of Investigation (FBI) in freezing 326 wallets containing USDT stablecoins worth a total of $435 million.
According to Bernstein analysts, stablecoins are becoming an increasingly popular tool for cross-border payments. In the first quarter of 2024 alone, the estimated annual value of all transfers reached $6.8 trillion, comparable in volume to the company's report of $7 trillion in 2022.
Amid the growth of cross-border payments in stablecoins, the US Treasury called on Congress to give it more authority to control cryptocurrency exchanges registered abroad. This is necessary to combat the circumvention of sanctions, including from Russia.
According to Bloomberg, the United States and Great Britain are checking cryptocurrency transactions worth more than $20 billion using Tether's USDT stablecoin, allegedly related to circumventing sanctions imposed against Russia.
Source: Cryptocurrency
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