Tether, the company responsible for the largest stablecoin, has recently released two letters that were sent to the US Senate Committee on Banking, Housing, and Urban Affairs and House Financial Services Committee. These letters were specifically addressed to Senator Cynthia Lummis and Representative French Hill, both of whom have raised concerns about the alleged use of stablecoins in illicit activities such as funding terrorism and money laundering.
In its correspondence, Tether emphasizes its commitment to adhering to Know Your Customer (KYC) and Anti-Money Laundering (AML) policies. The company highlights that it has undergone a Title 31 examination of its KYC program by the Internal Revenue Service (IRS) on behalf of the Financial Crimes Enforcement Network (FinCEN). Furthermore, Tether has engaged a reputable law firm in Washington DC to conduct an independent review of its KYC/AML, Bank Secrecy Act (BSA), and on-boarding program to ensure the highest standards are met.
Tether affirms its dedication to combating terrorist financing, complying with the Bank Secrecy Act and US Sanctions Laws, and maintaining rigorous customer due diligence and transaction screening. The company recently implemented a policy that enables it to freeze wallets and assets that are suspected to be involved in illegal activities. In addition, Tether actively collaborates with law enforcement agencies, including partnerships with the US Department of Justice and the United States Secret Service. The company also expresses ongoing efforts to collaborate with the Federal Bureau of Investigation (FBI) to combat illegal activities and aid in fund recovery.
Expressing gratitude for the opportunity to address these concerns with the US government, the newly appointed CEO of Tether, Paolo Ardoino, emphasizes the company’s commitment to being a “world class partner” to US authorities. Tether aims to continue assisting law enforcement and contribute to the expansion of the US dollar’s dominance globally.
As the largest stablecoin issuer, Tether’s market dominance continues to grow. The company’s market capitalization recently exceeded $90 billion, further solidifying its position in the stablecoin market.
Tether’s release of the letters to the US Senate Committee and House Financial Services Committee demonstrates its proactive approach in addressing concerns raised by government officials. The company’s commitment to maintaining strict KYC and AML policies, fighting illegal activities, and collaborating with law enforcement agencies signifies its dedication to ensuring the integrity of its stablecoin. With its market dominance and ongoing efforts to comply with regulatory standards, Tether remains a significant player in the cryptocurrency industry.
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