According to Cointelegraph: Chainalysis to Boost Tether’s Monitoring of Illicit Activities in the Secondary Market
Blockchain analytics firm, Chainalysis, is set to assist Tether in monitoring the secondary market for possible illicit activity. The two companies are aiming to enhance market insights and identify wallets potentially associated with unlawful or sanctioned addresses.
Through a suite of tools provided by Chainalysis, Tether will gain enhanced capabilities in tracking and analyzing transactions. The four key features highlighted by Tether on its website include “Sanctions Monitoring”, which flags transactions involving sanctioned entities, and “Illicit Transfer Detector” designed to spot transactions potentially linked with illegal activities such as terrorist financing.
Further, “Categorization” will classify Tether (USDT) holders by types such as exchanges or darknet markets, while “Largest Wallet Analysis” will study the activities of significant USDT holders.
Paolo Ardoino, CEO of Tether, emphasized the importance of this collaboration: “Our partnership with Chainalysis is a crucial step in our persistent commitment to establishing transparency and security within the cryptocurrency industry. This partnership bolsters our proactive approach to protecting our ecosystem from illicit activities.”
Although Tether has faced criticism over the alleged role of its stablecoin in criminal activities and terrorism funding, the company emphasizes on its continuous effort to counteract illicit activities, having cooperated with authorities in 43 jurisdictions.
Aiming to enhance its financial transparency, Tether – with a market capitalization of $109.8 billion outstripping closest competitor USD Coin (USDC) with a market cap of $33.9 billion – evolves to address regulatory expectations while ensuring the security of its vast user base.