Tether has responded to the latest report from the United Nations Office on Drugs and Crime (UNODC). Recall that recently, the UN group accused the company’s stablecoin of being a major cryptocurrency tool for illicit activities in the Southeast part of Asia.
Tether went ahead to criticize the report by the UN group, accusing them of neglecting the countermeasures, which are in accordance with international law enforcement. Tether said that the use of public blockchains ensures strict tracking of every transaction.
It says that it gives an impractical choice for conducting illegal activities. The company cited the freezing of over $300 million in the last few months as an example. It also highlighted its commitment to addressing the growing trend of the illegal use of cryptocurrencies.
Tether Advice UN Group, Urge Safer Cryptocurrency Industry
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Early in 2024, a UN report was released that highlighted Tether’s considerable increase in the amount of stablecoins worldwide. The research claims that in 2023, Tether’s share increased from 50% to 71%. The significant rise has been described by Alisa Davidson, an analyst with Metaverse Post, as highlighting Tether’s leadership in the stablecoin space.
It begs the issue of what effect it might have on the larger financial scene. The rise in Tether’s market share has been accompanied by heightened regulatory oversight. The stablecoin issuer has been the subject of questions and investigations over its links with financial institutions and asset management procedures.
The transparency of Tether’s reserves and the extent of its ties to conventional banks have recently started drawing criticism. Tether, in its official statement, advised the UN group to focus on a centralized stablecoins system and how it can enhance the fight against anti-financial crime. They also declared that there are multiple opportunities out there to deploy in the fight against financial crimes in the cryptocurrency and blockchain industries.
Tether’s Response to the United Nations Justifies its Reserved Holding
Regarding the consequences of the UN study, Tether has vehemently denied any claims that associate USDT with illicit operations. The stablecoin issuer underlined that it runs with the greatest levels of honesty and that it is committed to adhering to legal regulations.
In its reaction, Tether provided a thorough justification of its reserve holdings, stating that each USDT is entirely supported by reserves made up of both short-term securities and traditional currency assets. The stablecoin issuer underscored its commitment to upholding an open and audited reserve structure in response to authorities and the public’s concerns.
Tether Declares Support, Offers to Assistance in Cryptocurrency Education
Dara from Metaverse Post has revealed that with approximately $95 billion worth of USDT in circulation, USDT has been ranked the biggest stablecoin in the cryptocurrency industry. The data also revealed that the stablecoin supply globally witnessed a 71% – 50% increase in 2023.
Tether has assured its belief that UNODC will gain substantially from an improved knowledge of blockchain technology and all the major advancements it will bring in combating finance-related crimes. Tether has also encouraged UNODC to be proactive in learning new developments in the cryptocurrency industry.
It also emphasized the relevance of building a more informed cryptocurrency community. Tether has offered to assist UNODC in an effort to help them get a better understanding of the industry and also deploy resources to get involved in a collaborative dialogue. The company cited its antecedents, pointing out the many partnerships it has had with multiple international law enforcement agencies.