Tether, the biggest stablecoin pegged to the US dollar, is ramping up efforts to fight illegal activity in crypto markets. The company announced a partnership with blockchain analytics firm Chainalysis to identify transactions linked to sanctioned entities and track major token holders.
This move comes after recent reports suggesting the potential misuse of Tether for sanctions evasion by Venezuela and Russia. Tether claims all transactions are traceable and can be frozen if necessary, underlining their commitment to catching criminals.
Tether’s rapid growth, reaching $100 billion in circulation this year, is credited to its use as a dollar alternative in emerging markets.
Stablecoins offer a payment method and a way to trade between cryptocurrencies on exchanges.
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