UNODC’s Research On USDT
A recent report published by the United Nations Office on Drugs and Crime (UNODC) has labeled USDT as the preferred asset of choice for illicit transactions. The investigation raised worries about Tether’s (USDT) potential involvement in criminal operations.
The UNODC’s Southeast Asia and Pacific division released a detailed investigation into using cryptocurrencies for illegal agendas and underground financial networks. The document mentioned that the USDT stablecoin is vital for facilitating money laundering in the region.
According to the UNODC’s research, the widespread use of USDT on the Tron blockchain has made it a popular choice for cybercrime and money laundering entities in the region. The report added that the asset’s accessibility, privacy, cost-effectiveness of transactions, and the system’s stability contribute to its appeal.
Challenging UNODC’s Report
In a thorough response to the United Nations study, the stablecoin issuer questioned the conclusions adopted by the global body, claiming that the agency’s methodology missed the USDT traceability feature. It added that the body should have mentioned Tether’s established international collaboration with law enforcement authorities.
Also, Tether urged the UN to investigate how centralized stablecoins, such as USDT, help strengthen efforts to combat financial crimes. Furthermore, Tether highlighted its proactive approach to combatting illicit activities by revealing that it had frozen over $300 million in USDT connected with illegal acts in recent months.
Recall that the firm froze $225 million last November as part of a US investigation into a Southeast Asian human trafficking organization. Tether also highlighted the stablecoin’s role in assisting developing economies to achieve financial inclusion.
The firm rebuked the global financial entity for overlooking these efforts. Additionally, Tether emphasized its commitment to unmatched surveillance, which it continues to achieve through partnerships with international law enforcement organizations.
The USDT issuer added that its efforts outperform traditional banking institutions’ capabilities, which have historically served as conduits for money laundering. Meanwhile, Tether asked the international community and the United Nations to raise awareness of blockchain technology’s use as a critical tool for addressing financial crimes.
Tether’s Aim For Global Dominance
Regardless of the UN report, Tether’s objectives haven’t changed. Last month, the firm announced its desire to become a “world-class partner to the United States.” The firm issued this statement in reaction to US politicians encouraging the Department of Justice to take action against the alleged illegal usage of Tether’s USDT stablecoin.
The underlying concern about financial crimes and money laundering has remained a constant focus for global regulators in cryptocurrencies, particularly flagship digital assets such as Bitcoin. Contrary to popular belief, Bitcoins are no longer the preferred method of illegal transactions.
Analysts believe criminal groups have increasingly turned to traditional fiat currencies such as the US dollar or alternative crypto assets to undertake unlawful transactions in the past few years. Hence, this increasing trend poses significant concerns for regulatory agencies worldwide. It also calls for rethinking measures to combat financial crime in the dynamic digital and traditional finance ecosystem.
