It's no secret that there is a lot of illegal stuff going on in the cryptocurrency world, and stablecoins play a big role in it. The United Nations is also aware of this and therefore takes a critical part in a research report. Tether immediately goes on the defensive and calls the UN short-sighted.
Crypto legislation in Turkey is reaching its final phase. What does that mean?
Government and Regulation
United Nations: Criminal use of USDT is increasing
By far the largest stablecoin currently is Tether's USDT. Thanks to its market value of around $95 billion, it has secured a stable third place in the market. Nevertheless, the United Nations is not happy with the coin because USDT, like many other cryptocurrencies, is often used by criminals.
In a 106-page report, the organization describes how casinos, money laundering schemes and underground banks in Southeast Asia use crypto for their businesses. In particular USDT would be used for this due to its stable value; Bitcoin (BTC) is only mentioned once in a footnote.
For example, online casinos are said to use USDT to circumvent regulations in Southeast Asia. In general, online casinos require a license, but not all of them do. By using USDT, the lack of a license is not as noticeable.
It is also alleged that fraudulent, shady banks are using USDT to launder criminal money. Furthermore, the usage of this token would have increased rapidly; The UN now sees this as a major and growing problem.
The crypto giant Tether is outraged
But Tether immediately published a critical response. For example, it notes that it is working closely with law enforcement to prevent USDT-related crimesOmen. In recent months, more than $300 million has been frozen by criminals on behalf of state authorities. It is also emphasized that blockchain technology makes it possible to track every transaction.
The company therefore does not see the point of the UN and even criticizes the international organization for neglecting disadvantaged communities. Many poor countries are terrible dependent on stablecoins.
USDT is more stable than some local fiat currencies, This means that residents of Brazil, for example, prefer transactions with USDT of all cryptocurrencies. According to Tether, the UN does not benefit from helping such countries by promoting the use of USDT.
Post views: 178