Tether Slams UN Report for Linking USDT with Illicit Activities

Tether Slams UN Report for Linking USDT with Illicit Activities 

The world's largest issuer of the stablecoin USDT, Tether, has slammed the United Nations Office on Drugs and Crime report for ignoring the “role of the stablecoin in helping developing economies in emerging markets and linking it with illicit activities.” The stablecoin uses public blockchains, and every transaction is traceable, making it “an impractical choice for illicit activities,” explained Tether. 

Report Ignores the Role of USDT in Developing Economies 

Tether, the issuer of the stablecoin USDT, has slammed the United Nations Office on Drugs and Crime (UNODC) report for linking the use of stablecoin with illicit activities. Tether counters that the UNODC report ignores the role of the stablecoin “in helping developing economies in emerging markets.” The global financial world is known for ignoring these markets because “servicing such communities would be unprofitable,” the stablecoin issuer stated. 

Tether rebuffed the UNODC report on USDT in a statement on January 15, stating that its collaboration with global enforcement agencies ensures “unparalleled monitoring” of the tokens. The use of public blockchains ensures that every tether transaction is traceable, making USDT “an impractical choice for illicit activities.”

The UNODC’s report also mentions USDT as the heart of many pig butchering scams. The UNODC’s regional representative for Southeast Asia, Jeremy Douglas, stated that criminals use the stablecoin because they are aware that crypto regulations “are way behind illicit activity.”

Tether Collaborates with Global Enforcement Agencies 

“The UN’s analysis ignores the traceability of Tether tokens and the proven record Tether has of collaborating with law enforcement. Rather than focusing solely on risks, the UN should also discuss how centralized stablecoins can improve anti-financial crime efforts,” the stablecoin issuer stated.

Tether also urged the UNODC to consider collaborating with the industry, which will enable it to “understand and execute modern strategies to fight financial crime.” The UNODC should consider engaging with the stablecoin issuer and stop highlighting negative consequences, Tether added.

What is your take on UNODC’s report against USDT? Please share your thoughts and opinions in the comments section below.

Image source: Shutterstock