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USDT and "illegal" reaction from Tether to the UN
The Tether company reacted to the United Nations' report that stablecoins, especially USDT, are a tool in illegal activities.
The report, prepared by the UN's South Asia and Pacific Unit, was titled "Casinos, money laundering, underground banking and transnational organized crime". The report also touched on stablecoins along with the use of cryptocurrencies in illegal activities.
TRON blockchain detail was also given
It was stated that USDT, which is among these stablecoins, is an important tool in money laundering activities in South Asia and the Far East region. In fact, in this sense, it was detailed that there was a use of USDT on the TRON blockchain.
"USDT traceability has been ignored"
The Tether company, on the other hand, responded to the institution a day after the UN report and reacted in a way. In the statement, which stated that the traceability benefit brought by blockchain technology was excluded, it was written that more than $300 million in cryptocurrencies have been frozen in recent months thanks to the work of the Tether company.
"Made with the traditional banking system"
In the report, it was stated that the contribution of the use of USDT to the economies of developing countries is ignored, while money laundering transactions have been carried out with traditional banking institutions for decades and this has been proven many times.
"The use of Tether tokens is not suitable for these activities"
It was also one of the details given in the report that Tether's tokens, which use public blockchains, allow every transaction to be tracked, which actually prevents illegal activities.
Tether works with the world's most important law enforcement agencies, from the US Department of Justice to the FBI, the response said.
"We believe it would be beneficial for the UN to better understand blockchain technology and the tremendous advances it offers in the fight against financial crime. We encourage a learning approach and think this is vital for a more conscious environment. We would also be happy to support the UN in learning more."
Published: January 16, 2024 13:21Last Updated: January 16, 2024 13:22