Tether, the issuer of the widely-used stablecoin USDT, has raised objections to a study conducted by the United Nations Office on Drugs and Crime (UNODC), which specifically highlighted the stablecoin’s alleged involvement in illicit activities. Tether contends that the UNODC report fails to acknowledge its crucial role in supporting developing economies in emerging markets.
Tether highlights its positive roles in developing countries
The stablecoin issuer asserts that the use of public blockchains in USDT transactions provides traceability, rendering it an impractical choice for engaging in illegal activities. In a statement released on January 15, Tether criticized the UNODC’s assessment of USDT, emphasizing its active collaboration with global law enforcement agencies. According to Tether, this collaboration ensures unparalleled monitoring of USDT transactions, challenging the notion that the stablecoin is a preferred choice for illicit activities.
The statement also highlighted the often-overlooked aspect of developing economies in emerging markets, suggesting that the global financial world neglects these regions due to perceived unprofitability. Tether further defended its position by underscoring its actions in freezing tokens worth over $300 million in recent months. This move, according to the company, serves as tangible proof of its commitment to eradicating the criminal use of cryptocurrencies. Additionally, the stablecoin issuer expressed discontent with what it perceives as bias against USDT in the UNODC’s analysis.
Traceability and the company’s action against illicit activities
While the UNODC’s study implicated USDT in various fraudulent schemes, including pig butchering scams, Tether countered these findings by stressing the traceability of its tokens. The stablecoin issuer also highlighted its proven track record of collaboration with law enforcement, pointing to the freezing of substantial token amounts as evidence of its dedication to combating illicit activities. Jeremy Douglas, the UNODC’s regional representative for Southeast Asia, argued in the study that criminals exploit USDT because crypto-related regulations lag behind illicit activities.
Tether contested this assessment, urging the UNODC to adopt a collaborative approach with the industry to understand and implement modern strategies to combat financial crime. In addition, Tether called for a shift in focus from solely discussing risks associated with stablecoins to recognizing how centralized stablecoins, like USDT, can contribute to enhancing anti-financial crime efforts. The stablecoin issuer encouraged the UNODC to engage in a constructive dialogue with Tether, emphasizing the importance of cooperation in addressing the complex challenges posed by the intersection of cryptocurrencies and criminal activities.
Tether vehemently rejected the UNODC’s study findings, defending its stablecoin’s pivotal role in supporting developing economies and highlighting its commitment to collaborating with law enforcement to monitor and combat illicit activities. The stablecoin issuer urged the UNODC to consider a more balanced approach, engaging in a dialogue with the industry to develop effective strategies against financial crime. Tether emphasized the importance of cooperation and understanding to navigate the intricate landscape where cryptocurrencies intersect with criminal activities.
