Tether Criticizes UN Report for Overlooking Its Positive Impact in Emerging Markets
Tether has publicly expressed its disappointment with a recent United Nations report, which identified its USDT stablecoin as a preferred tool for cryptocurrency-based money launderers in Southeast Asia.
In its response, Tether challenged the UN’s assessment, emphasizing the report’s failure to acknowledge USDT’s significant contributions to developing economies and emerging markets.
Tether Counters UN Report with Emphasis on Law Enforcement Collaboration
In a detailed response to the United Nations report, Tether has expressed disappointment over the UN’s focus on the stablecoin’s alleged role in illicit activities, while overlooking its contributions to developing economies in emerging markets.
Tether underscored its ongoing collaboration with major global law enforcement agencies, including the DOJ, FBI, and USSS, asserting that such partnerships provide superior monitoring capabilities compared to traditional banking systems, which have historically been used for substantial money laundering.
Tether emphasized the inherent transparency of its stablecoin, which operates on public blockchains where every transaction can be tracked. This, according to the company, makes USDT a highly impractical choice for conducting illicit activities.
Tether’s CEO, Paolo Ardoino, in an interview, reinforced this perspective by stating that using Tether for illegal purposes would be highly ineffective. He pointed out that the traceable nature of the stablecoin, combined with its record of cooperating with law enforcement, forms a strong defense against the claims made in the UN report.
Tether’s Proactive Measures Against Cryptocurrency Crime
Tether has been actively involved in assisting the United States Department of Justice (DOJ) in curbing illicit activities and criminal usage of cryptocurrencies. A notable instance of this collaboration is Tether’s freezing of over $225 million in USDT tokens, which were linked to an organization engaged in human trafficking and romance scams, colloquially known as ‘pig butchering,’ in Southeast Asia.
Demonstrating its commitment to combat the misuse of cryptocurrencies, Tether reported freezing more than $300 million in recent months. This action underscores their dedication to addressing criminal activities in the digital currency space.
Additionally, Tether has focused on enhancing security measures. In partnership with Chainalysis, they developed a tool specifically designed to monitor secondary markets.
This initiative is part of Tether’s broader effort to protect the cryptocurrency community and ensure the responsible use of its stablecoin in the global financial ecosystem.
Emphasizing the Importance of Blockchain Literacy
Tether has highlighted the critical role of blockchain education in combating financial crime. The company suggests that the United Nations’ focus should not only be on the risks associated with centralized stablecoins but also on how these digital assets can enhance anti-financial crime efforts.
Tether advocates for a more comprehensive understanding of blockchain technology within the UN, pointing out the significant benefits it offers in the fight against financial crime.
To this end, Tether has extended an invitation to the UN for a collaborative dialogue, similar to the successful interactions it has had with various global law enforcement agencies.
In concluding their response, Tether reaffirms its commitment to promoting transparency and accountability in the realm of digital currencies. This stance reflects the company’s dedication to advancing responsible practices in the use of blockchain and stablecoins, with a strong emphasis on education and collaboration as key tools in the global fight against financial crimes.
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