Tether taps Chainalysis to track USDT activity on secondary markets

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As an experienced financial analyst following the cryptocurrency market closely, I believe Tether’s partnership with Chainalysis is a proactive step towards addressing concerns over potential misuse of their stablecoin in illicit activities or circumventing sanctions. The collaboration between these two entities will significantly enhance Tether’s oversight capabilities and enable them to monitor secondary market activity more effectively.

Tether, the issuer of stablecoins, has revealed a collaboration with Chainalysis, a leading blockchain investigation company, to create a tool that enables tracking of transactions in the secondary market.

Tether is strengthening its monitoring of the USDT market by teaming up with Chainalysis, a blockchain analysis company based in New York. According to a blog post published on May 2, this collaboration will provide Tether with valuable intelligence for compliance investigators. They will be able to identify potentially risky or suspicious wallets linked to illicit or sanctioned addresses, allowing for proactive action.

As a dedicated analyst, I’m thrilled to announce that we’re taking a significant leap forward in our mission to bring transparency and security to the cryptocurrency sector. By partnering with Chainalysis, we’ll be able to bolster our efforts and make a real impact on the industry.

Tether CEO Paolo Ardoino

As a crypto investor, I can tell you that using the tool created by Chainalysis is beneficial for ensuring compliance with regulatory requirements. This innovative platform offers functionalities like sanctions monitoring, which provides me with a list of prohibited entities’ addresses and transactions. By staying informed about such restrictions, I can safeguard my investments from potential legal risks.

The tool further differentiates USDT users into various groups, such as exchanges and darknet markets. It also includes a feature that identifies suspicious transactions, potentially linked to illicit activities including terrorist financing.

Amidst senators’ worries about possible misuse of Tether’s stablecoin by nations such as Russia, Iran, and North Korea to bypass Western sanctions, there is now a partnership being formed.

According to crypto.news’ previous report, accusations emerged that USDT facilitated transactions for Russian entities, allowing them to acquire drone parts and other equipment from foreign sources despite sanctions. Consequently, senators raised doubts about the Defense Department and Biden administration’s stance on the Treasury Department’s plea for extended regulatory authority.

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2024-05-03 10:20