Tether Holdings Limited (the issuer of USDT), the largest stablecoin market cap, announced recently that it had integrated Notabene to manage regulatory risk and counterparty risks in crypto transactions.
Tether to Stop Illegal Transfers
Tether announced Tuesday that it will test the Notabene platform in compliance with the Crypto Travel Rule. This mandate was established by the Financial Action Task Force on June 20, 2021.
Tether will be able to combat illegal transfers by transmitting user information for large cryptocurrency transfers, to VASPs, using Notabene’s end to end solution.
#Tether will test the Notabene platform to help cryptocurrency exchanges, digital wallet providers and financial institutions comply with the FATF Travel Rule.
Tether (@Tether_to October 26, 2021
Travel Rule states that Virtual Asset Service Providers must adhere to the same laws as regulated financial institution and mandatory organizations. When transferring certain amounts of digital assets, VASPs must conduct KYC (Know Your Client) and exchange relevant client information among counterparties.
Tether is “Fully Committed to Transparency”
This comes after Tether was under scrutiny by regulators like the U.S. Commodity and Futures Trading Commission. Bitfinex was fined $42.5 million and Tether and Bitfinex were fined $42.5 million for misleading claims regarding the USDT token.
Tether claims it will comply with all global regulations and fully commits to transparency
“It is important that we collaborate with other large VASPS in order to build this industry from scratch. We are pioneers in blockchain technology and leaders of transparency. As such, we will not only keep up with the new rules but also help shape them. Leonardo Real, CEO of Tether, stated that the Travel Rule is traditionally applicable to financial institutions. “We see this as an opportunity to foster cooperation across digital and traditional channels in order to provide better services to customers worldwide.”
Tether’s opponents don’t believe the same. CryptoPotato reported that Bloomberg published a controversial report called “Anyone SeenTether’s Billions?”. It claimed that Tether is a fraud because it lacks the assets to support the USDT token.
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