Stablecoin issuer Tether criticized the United Nations report, claiming that its USDT tokens are being used for illegal activities.
In a Jan. 16 blog post, Tether said the monitoring its stablecoins attract from regulatory authority surpasses those of the traditional banking systems.
The firm furthered that its assets were extensively monitored by global regulatory agencies, including the U.S. Department of Justice (DOJ), the Federal Bureau of Investigations (FBI), and the United States Secret Service (USSS).
“Tether tokens, using public blockchains, make it possible to meticulously track every transaction, making it an impractical choice for illicit activities,” Tether added.
A recent UN report highlights a rising preference among money launderers and scammers for Tether’s USDT stablecoin in illicit transactions. The report revealed the widespread use of this digital asset in various forms of underground fraud, with a particular focus on its involvement in romantic scams prevalent in Southeast Asia.
Advocates for blockchain education
The stablecoin issuer advised the UN to have “an expanded understanding of blockchain technology and the immense improvements it offers with respect to fighting financial crime.”
According to the firm, this knowledge would help the agency understand how centralized stablecoins can help improve anti-financial crime efforts.
“There are yet many more opportunities to work to stop financial crimes on blockchains and it behooves the UN to work with the industry to understand and execute modern strategies to fight financial crime,” Tether added.
Tether CEO Paolo Ardoino disclosed that the firm was willing to collaborate with the UN to combat illicit activities, adding that:
“Education on Blockchain technologies is very much needed at all levels. As demonstrated by recent disclosures, Tether works with global law enforcement to combat illicit activities. And we remain always open for further collaboration, including with the UN.”
Tether is the largest stablecoin by market capitalization and controls more than 70% of the market. It has a circulating supply exceeding 95 billion tokens as of press time, according to CryptoSlate’s data.
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