The new feature will not only track suspicious transactions but will also help identify the risks facing the token holders.
Paolo Ardoino, CTO of Tether, said:
“This solution allows us to ensure a secure compliance program that fosters trust with regulators, law enforcement agencies and users. Thus, we can achieve this without sharing our user’s identifying information, as such data is only kept on our servers.”
Market regulators began to assert that stablecoins need more scrutiny. In October 2019, the Financial Crimes Enforcement Network (FinCEN) stated that stablecoin issuers must comply with AML regulations.
The regulator considers stablecoin issuers as money services businesses. Thus, they must abide by the regulatory measures.
Jonathan Levin, chief strategy officer of Chainalysis, said:
“By putting proper AML transaction monitoring in place, Tether is demonstrating its commitment to transparency and regulatory compliance, further building trust among its growing user base.”
Recently, Tether and Bitfinex were suspected of manipulating the Bitcoin market and hiding illegal proceeds.
However, Tether commented on this allegation, saying: “It is reckless – and utterly false – to assert that Tether tokens are issued in order to enable illicit activity.”
Tether burns 102M USDT
Earlier, Cryptolydian reported that Tether Treasury has completed the burning of 102 million USDT.
The issuance of USDT is very common in the crypto market. Thus, the USDT, the world’s ninth largest cryptocurrency, has been linked to Bitcoin (BTC), with an accuracy rate of 70%.
However, the market’s reaction to this significant event is still unclear.
Tether Treasury is not the only entity to burn its stablecoin. For example, Pax Treasury planned to burn some of its PAX coins. Whale Alert has picked up the burn of nearly 1 million.
Over the last 24 hour, USDT has declined 0.17 percent to $0.998.