Tether Initiates New ‘Voluntary Wallet-Freezing Policy’ To Combat Sanctioned Actors
Tether, the largest stablecoin issuer in the world, has launched a new wallet-freezing policy that aims to combat activity connected with entities sanctioned by US regulators.
In an announcement, Tether says the initiative targets persons on the Office of Foreign Assets Control (OFAC) Specially Designated Nationals (SDN) List.
Tether also says that the move is an effort to work closer with global regulators and law enforcement in “safeguarding stablecoin usage.”
The firm adds that it has taken additional precautionary measures, namely the freezing of wallets that have been added to the SDN list to prevent the potential misuse of USDT.
Says Tether CEO Paolo Ardoino,
“This strategic decision aligns with our unwavering commitment to maintaining the highest standards of safety for our global ecosystem and expanding our close working relationship with global law enforcement and regulators…
By executing voluntary wallet address freezing of new additions to the SDN List and freezing previously added addresses, we will be able to further strengthen the positive usage of stablecoin technology and promote a safer stablecoin ecosystem for all users.”
Tether is believed to be one of the biggest Bitcoin holders. The company announced in May that it would regularly allocate up to 15% of its net realized operating profits towards purchasing BTC. Pseudonymous analyst EmberCN notes Tether has purchased 4,083 BTC since making that announcement.
Ardoino said at the time that the company’s decision to invest in Bitcoin was due to its strength and potential as an investment.
“Bitcoin has continually proven its resilience and has emerged as a long-term store of value with substantial growth potential. Its limited supply, decentralized nature, and widespread adoption have positioned Bitcoin as a favored choice among institutional and retail investors alike.
Our investment in Bitcoin is not only a way to enhance the performance of our portfolio, but it is also a method of aligning ourselves with a transformative technology that has the potential to reshape the way we conduct business and live our lives.”
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