Stablecoin Tether Intensifies Surveillance Efforts to Counter Illicit Finance

Tether, the world’s leading stablecoin, has intensified its efforts to monitor the usage of its tokens within the broader cryptocurrency markets and transactions to combat illicit financial activities, according to a statement released by Tether on Thursday.
Partnering with blockchain analytics firm Chainalysis, Tether has rolled out new tools aimed at identifying transactions linked to sanctioned entities and scrutinizing the activities of major token holders.
Recent reports have highlighted instances where Tether was allegedly utilized to circumvent sanctions, such as Venezuela’s state-run oil company PDVSA increasing its use of Tether for crude and fuel exports amidst U.S. oil sanctions, as well as Russian intermediaries leveraging Tether to bypass Western sanctions for sourcing military equipment components.
Tether has asserted its commitment to transparency, stating that all cryptocurrency actions are traceable and emphasizing its capability to freeze tokens if required by law enforcement. With its circulation reaching $100 billion in March, Tether’s rapid growth has been attributed to its adoption as an alternative to traditional currencies, particularly in emerging markets.