- Stablecoin issuer Tether unveiled a new policy to combat cybercrime amid intensifying industry regulations.
- The firm has begun freezing users’ wallets in line with OFAC regulations.
- Tether Advisor disputes market analysis regarding the USDT market position.
As global financial authorities intensify industry oversight, cryptocurrency entities make policy shifts to ensure compliance. On December 9, 2023, USDT-stablecoin issuer Tether unveiled a new wallet-freezing policy, targeting sanctioned individuals in line with the US Office of Foreign Asset Controls (OFAC) requirements.
Against this backdrop, the stablecoin issuer has restricted access to more sanctioned wallets.
Tether Continues Freezing Wallets
Tether’s wallet-freezing initiative has progressed with momentum, freezing an additional 161 Ethereum-based wallets on December 11.
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The move came less than 24 hours after its initial decision to lock 41 crypto wallets, which included those linked with the coin mixer Tornado Cash and the 2022 Ronin Bridge Attack.
Approximately 150 of the frozen wallets did not hold any USDT, as only 11 had cryptocurrency balances exceeding 3.5 million USDT tokens, of which a substantial 3.4 million was concentrated in a single address.
Amid the recent Tether developments, investment solution firm VanEck has predicted a potential ousting of the firm’s USDT by its Circle-owned market rival, UDSC. In response, Tether advisor Gabor Gurbacs has expressed his disagreement.
Gurbacs reiterated that USDT’s focus on retail service provision grants it an advantage over UDSC’s institutional bet, guaranteeing its longevity within the expanding industry.
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He added that the unclear regulatory standards surrounding U.S-based crypto firms like Circle will not impact Tether, further ensuring an enduring presence within the industry.
Read more on regulations and standards of the crypto industry in the United States:
Senator Warren Labels Crypto a Threat to the United States
USDT extends its stablecoin market dominance as its market cap reaches a new all-time high. Read more:
Tether USDT’s Market Cap Skyrockets to Near $90B ATH
