Tether, the world’s largest stablecoin issuer, has launched a new wallet freeze policy that aims to combat activity linked to entities sanctioned by US regulators.
In an announcement, Tether said the initiative targets individuals on the Office of Foreign Assets Control (OFAC) Specially Designated Nationals (SDN) list.
Tether also says the move is an effort to work more closely with global regulators and law enforcement agencies in “safeguarding stablecoin use.”
The company adds that it has taken additional precautions, namely freezing wallets added to the SDN list to prevent possible misuse of USDT.
Says Paolo Ardoino, CEO of Tether,
“This strategic decision is in line with our continued commitment to maintaining the highest security standards for our global ecosystem and expanding our close working relationship with global law enforcement agencies and regulators…
By voluntarily freezing wallet addresses of new additions to the SDN list and freezing previously added addresses, we can further strengthen the positive use of stablecoin technology and promote a more secure stablecoin ecosystem for all users.”
Tether is believed to be one of the largest Bitcoin holders. The company announced in May that it would regularly spend up to 15% of its net realized operating profit on purchasing BTC. Pseudonymous analyst EmberCN notes that Tether has purchased 4,083 BTC since the announcement.
Ardoino said at the time that the company’s decision to invest in Bitcoin was due to its power and potential as an investment.
“Bitcoin has consistently proven its resilience and emerged as a long-term store of value with substantial growth potential. Bitcoin’s limited supply, decentralized nature, and widespread adoption have positioned it as a favorite choice among both institutional and retail investors.
Our investment in Bitcoin is not only a way to improve the performance of our portfolio, but it is also a method of aligning ourselves with a transformative technology that has the potential to change the way we do business and live our lives to reshape.”
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Featured image: Shutterstock/art.disini/WindAwake