The United Nations recently reported illicit USDT use, prompting Tether to issue a comprehensive response. However, Tether emphasized the benefits of their stablecoin in emerging economies, which the UN report allegedly neglected. Moreover, they highlighted the long-standing prevalence of money laundering in traditional banking systems. On the other hand, the UN report did not consider this perspective, despite decades of substantiated evidence. Furthermore, Tether stressed the need for a nuanced understanding of their stablecoin’s role. As a result, Tether called for a more balanced approach to assessing the impact of USDT on global financial systems.
Emerging Economies Overlooked
Tether firmly contested the UN report, asserting that the advantages of their stablecoin in developing economies were unjustly disregarded. The response underscored that the traditional banking system has been a conduit for money laundering for decades, a fact repeatedly proven through various instances.
Despite the accusations, Tether maintained that blockchain technology, with its traceability, has been instrumental in freezing over 300 million dollars worth of cryptocurrencies linked to illicit activities in recent months.
TRON Blockchain Insight
The UN report delved into the usage of stablecoins, specifically singling out USDT, as a significant tool in money laundering activities in South Asia and the Far East. Interestingly, the report also sheds light on the involvement of the TRON blockchain in facilitating the use of USDT for such purposes.
Blockchain Traceability Disregarded
Tether’s response, issued a day after the UN report, not only expressed dissatisfaction but also portrayed a sense of protest. It lamented the oversight of the traceability benefits brought about by blockchain technology. The company emphasized that, in recent months, Tether’s efforts led to the freezing of more than 300 million dollars in cryptocurrency linked to illicit activities.
Contributions to Developing Economies Ignored
While the UN report undermined the positive impact of USDT on developing economies, it acknowledged the historical use of traditional banking institutions for money laundering. Tether argued that the blockchain, which is accessible to the public, enables the tracking of every transaction involving Tether tokens, hindering illegal activities.
Collaboration with Global Law Enforcement
Tether’s response also highlighted its collaboration with some of the world’s most prominent law enforcement agencies, from the U.S. Department of Justice to the Federal Bureau of Investigation. The statement emphasized the company’s commitment to working with these entities. It encouraged the UN to gain a better understanding of blockchain technology and its significant advancements in combating financial crimes.
“We believe that encouraging a learning approach is essential, considering the tremendous developments that blockchain technology has brought to the fight against financial crimes. We are willing to support the UN in acquiring more information to foster a more informed and conscious environment.”
Tether’s response defends its position and advocates for a comprehensive understanding of blockchain technology. Moreover, it emphasizes the pivotal role in addressing illicit financial activities. The ongoing dialogue between Tether and global institutions reflects the evolving cryptocurrency landscape. Therefore, it highlights the integration into the broader financial ecosystem. In conclusion, Tether’s stance demonstrates its commitment to fostering transparency and combating financial wrongdoing. Furthermore, it underscores the need for ongoing collaboration between the cryptocurrency sector and regulatory bodies.