By Kimberly Crain
The largest stablecoin provider globally, Tether, sanctions The Wall Street Journal (WSJ) for sharing misleading information concerning its operation with the public. Recent news coverage on the WSJ demonstrates that regulatory watchdogs controls the operation of the Tether compliance unit.
The Tether team has denied the claims arguing that the attempt to uphold conformity with the law necessitates the firm to engage with legislators in running the business. Besides the involvement of law enforcers, Tether confessed that the company operations blend well with the financial standards.
Review of the WSJ Allegations
The WSJ accused Tether of contravening the financial laws by failing to timely report its audit findings in 2017. The WSJ also predicted that a decline in Tether asset value by 0,3% could plunge the company to liquidity. Also, a reporter from WSJ argued that Tether has been making losses due to the high margin of error that limits the company’s growth.
In response to the allegation, Tether stated that the 84 contents covered by the WSJ group concerning the stablecoin issuer were irrelevant and lacked substantial evidence.
According to the announcement conveyed by the Tether group on March 9, the company agreed to have strong ties with the US legislators, including the Justice Department (DoJ), crucial in improving its compliance capabilities.
Ideally, the Tether’s have adopted compliance processes and practices that abide by the law. The stablecoin issuer has been at the forefront of addressing unethical business practices, including money laundering and terrorism-related activities such as fundraisings.
Impact of Misrepresentation of Data
Per the Tether compliance principle, the company will remain steadfast in improving conformity with the law to attain the end plan. The report from Tether revealed that the firm is a compliant company suitable for building strong ties with law enforcement units within Hong Kong and globally.
Despite the compliance, Tether argued that the firm had demonstrated its inseparable capabilities to remain stable amid an ailing market. The announcement disclosed that the attempt to broaden its presence in the stablecoin sector has enabled Tether to generate substantial gains for the last seven years.
Following the ongoing criticism, Tether stablecoins USDT readings have surged by 1.1% in a day, valued at $1.01.
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