Tether shared its new initiative, a voluntary wallet-freezing policy
Tether, a significant player in the world of stablecoins, is making moves to strengthen its commitment to safety. In a recent announcement, Tether shared its new initiative, a voluntary wallet-freezing policy, aimed at aligning its services with U.S. sanctions policies. While specific numbers weren’t disclosed, it’s reported that Tether has already frozen 41 wallets connected to individuals and entities listed by the U.S. Office of Foreign Assets Control (OFAC).
This move goes beyond Tether’s platform, extending its reach to secondary markets. The company is taking these steps to cooperate with global regulators and law enforcement agencies, emphasizing its dedication to maintaining high safety standards across its ecosystem.
The CEO of Tether, Paolo Ardoino, expressed that this strategic decision is in line with their firm commitment to safety. By freezing wallet addresses linked to the OFAC SDN List, as well as previously flagged addresses, Tether aims to enhance the positive use of stablecoin technology and foster a more secure stablecoin ecosystem for all users.
While Tether didn’t explicitly state the event triggering this policy change, recent actions against major crypto exchange Binance and its settlement with U.S. federal prosecutors for money laundering and sanctions violations might be influencing factors.
Tether’s proactive measures this year affirm its commitment to sanctions rules. In October, the platform froze 32 addresses involved in illegal activities in Israel and Ukraine, assisting law enforcement agencies globally in freezing $835 million linked to thefts and hacks.
This latest move by Tether underscores the evolving landscape of cryptocurrency regulations and the industry’s responsiveness to align with global compliance standards. As the crypto space continues to mature, initiatives like Tether’s new policy signal a commitment to creating a safer environment for digital transactions.