Tether, the issuer of the largest stablecoin by market capitalization, has released the letters it shared with the U.S. Senate Committee on Banking, Housing, and Urban Affairs and the U.S. House Financial Services Committee in response to their inquiries on stablecoin regulation and oversight.
The letters, dated November 1, 2023, discuss Tether’s commitment to fighting the illicit use of stablecoins and ensuring the safety and soundness of its operations.
Tether outlines its Anti-Money Laundering (AML) and Know Your Customer (KYC) policies, which include verifying the identity and source of funds of its customers, conducting transaction monitoring and screening, and reporting suspicious activities to the relevant authorities.
Tether also details its collaboration with law enforcement agencies around the world to combat illegal activities involving stablecoins, such as money laundering, terrorism financing, fraud, and cybercrime.
They also say that it has provided assistance and information to several investigations and prosecutions and that it has frozen and seized millions of dollars worth of stablecoins associated with criminal activities.
According to the official statement, Tether’s recent letters reaffirm the company’s continuing efforts to assist U.S. law enforcement and regulatory authorities in their efforts to combat terrorist financing and other illicit activities.Â
Not only that, the launch of a wallet-freezing policy on December 1, 2023, is a landmark initiative for enhanced security and compliance within the cryptocurrency ecosystem.
Tether hopes to set new industry standards for security and compliance and to contribute to the development of a clear and consistent regulatory framework for stablecoins.
Tether says that it welcomes the opportunity to engage with policymakers and regulators to address their concerns and to promote the benefits of stablecoins for the global economy and society.
