Tether’s Commitment to KYC and Safety Measures
In their correspondence, Tether emphasized their robust Know Your Customer (KYC) program, a sophisticated transaction monitoring system, and their proactive approach to identifying suspicious accounts and activities.
To further ensure compliance, Tether has enlisted the assistance of a reputable law firm based in Washington DC to perform an Independent Review, evaluating the effectiveness of their KYC/AML, BSA, and On-Boarding procedures.
Paolo Ardoino, the newly appointed CEO, expressed his company’s willingness to engage in discussions with the US government and address any concerns they may have.
Notably, Tether’s market dominance has continued to grow, with a recent market valuation surpassing $90 billion.
Tether reiterated their commitment to actively cooperating with law enforcement agencies worldwide, offering their full support and assistance. They have a track record of identifying and freezing addresses associated with sanctions, illicit activity, or terrorist financing.
To enhance their surveillance capabilities, Tether utilizes the reactor tool provided by Chainalysis, a leading blockchain analysis firm. They also receive secondary market risk reports from Chainalysis, making use of the most advanced solutions for monitoring blockchain activity. Notably, these surveillance tools are trusted and utilized by various US government agencies.
To demonstrate their dedication to compliance, Tether introduced a voluntary wallet-freezing policy on December 9. This policy allows for the freezing of secondary market activity linked to individuals included on the United States Office of Foreign Assets Control (OFAC) Specially Designated Nationals (SDN) List.
However, Tether’s approach had to adapt due to the increasing regulatory pressure faced by cryptocurrency businesses both in the United States and globally.