Stablecoin issuing company Tether has recently introduced an enhanced security policy aimed at safeguarding the crypto ecosystem from bad actors. This new policy also emphasizes Tether’s commitment to cooperation and collaboration with law enforcement agencies. The implementation of this voluntary wallet-freezing initiative is designed to counter transactions associated with Sanctioned Persons listed on the Office of Foreign Assets Control (OFAC) Specially Designated Nationals (SDN) List.
Tether has acknowledged the importance of security within the crypto space and has taken steps to enhance its existing wallet-freezing policy. The previous policy only applied to wallets on its own platform, but the stablecoin issuer has extended its sanctions control to the secondary market. This expansion is aimed at improving the company’s relationship with governmental agencies and further ensuring the safe utilization of stablecoins.
Interestingly, Tether’s latest policy represents a significant shift from its previous stance. In 2022, the company stated that it would not willingly restrict sanctioned Tornado cash addresses unless specifically instructed by security agencies. However, with the introduction of the new policy, Tether has now begun implementing wallet-freezes for all 41 wallets associated with individuals and companies on the OFAC-SDN list.
Pablo Ardonio, a spokesperson from Tether, expressed enthusiasm regarding this new development. Ardonio emphasized the company’s commitment to user safety and their intention to strengthen ties with regulators globally. He stated, “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.”
The voluntary wallet address freezing of newly added addresses to the SDN List and the freezing of previously added addresses will enable Tether to further promote the positive usage of stablecoin technology and create a safer ecosystem for all users.
The introduction of this new security policy by Tether has received a warm welcome from crypto enthusiasts. They believe that these measures could have a positive impact on stablecoin adoption in terms of regulations and overall usage. The collaboration between Tether and the US government, as evident by their compliance with regulators’ demands for freezable wallets, is seen as a bullish indicator. This collaboration could potentially lead to the implementation of the US Stable Coin Act, further promoting global adoption of stablecoins.
In addition to the new security policy, Tether has made headlines with a significant transfer of $60 million worth of USDT to a “mysterious fund/institution” on December 8. Blockchain analytics firm Lookonchain revealed this development and further shared that Tether had transferred a total of $1.76 billion USDT to this fund/institution since October 20. The funds have been subsequently dispersed to various exchanges.
As the issuer of the world’s largest stablecoin, Tether’s large-scale transactions are always of great interest to the crypto community. Their ability to transfer such substantial sums highlights Tether’s importance within the crypto ecosystem. At the time of writing, USDT continues to thrive in 2023, with a remarkable market cap value of $90 billion.
Tether’s introduction of a new security policy, including the voluntary freezing of wallets associated with sanctioned individuals and companies, demonstrates their commitment to user safety and cooperation with law enforcement agencies. By extending their wallet-freezing initiative to the secondary market, Tether aims to build stronger relationships with governmental agencies and ensure the responsible use of stablecoins within the crypto ecosystem. The positive reception of these measures and Tether’s significant transactions further solidify its position as a key player in the crypto industry.