Tether, the issuing company of USDT, partnered with the blockchain analysis company Chainalysis in order to implement a monitoring tool for stablecoin transactions. 

As Tether reports in a statement, the solution designed by Chainalysis facilitates the monitoring of transactions carried out in the markets where USDT is traded .  

The intent is to apply increased monitoring and use the results as a source of intelligence for investigators and compliance professionals within the company. In this way, they aim to identify portfolios "that may present risks or may be associated with illicit and/or sanctioned addresses."

“The key components of this solution encompass a complete set of monitoring and analysis tools,” explains Tether.

Tools include Sanctions Monitoring, which provides a detailed list of addresses and transactions involving sanctioned entities. They add to this an "illicit transfer detector" to identify transactions potentially associated with terrorist financing.

They add that it will also allow them to do a complete breakdown of USDT holders by type, including those participating in exchanges and dark web markets. They will also be able to carry out an analysis of the largest portfolios , through a detailed evaluation of the stablecoin holders and their activities.

In this way, the company seeks to collaborate with "transparency and security within the cryptocurrency industry." As Paolo Ardoino, CEO of Tether, comments, the goal is to “reinforce our proactive approach to safeguard our ecosystem against illicit activities.”

The idea is shared by the Chainalysis team, pointing out that the transparency of cryptocurrencies should be taken advantage of "to partner with authorities and freeze criminal funds as a way to deter their use for terrorism, scams and other illicit activities."

This is how, through the use of these tools, Tether continues its efforts to combat illicit activities within the ecosystem.

Hence, since the end of last year, it has incorporated its platform into the United States Secret Service , and is in the process of doing the same with the FBI. In this way, the company has collaborated with 124 law enforcement agencies in 43 global jurisdictions, freezing approximately more than 326 wallets for 435 million USDT.

All of this occurs in a context in which the US government is increasing the legal restrictions imposed on companies and figures in the sector, with the focus on the use of cryptocurrencies for money laundering, illicit transactions, tax evasion and trade. of securities. This, through lawsuits, arrests and confiscations that have generated much controversy.

Notable among them are the arrests of the founders of Samourai Wallet, as well as investor Roger Ver.

Even Tether is under siege from regulators in several jurisdictions who associate the use of USDT with criminal activities. This, despite the company's efforts to collaborate with the authorities.

The United Nations (UN) issued a warning, at the beginning of the year, about the use of USDT in money laundering practices and scams . The restrictions also come from regulations that establish strong requirements for the operation of stablecoin companies, forcing them to request authorization to operate and establishing emission limits, as occurs with MiCA in the European Union.