Tether Criticizes UN Report for Ignoring USDT’s Role in Helping Developing Economies

Tether, the issuer of the stablecoin USDT, has criticized a recent United Nations Office on Drugs and Crime (UNODC) study for neglecting the role of USDT in helping developing economies in emerging markets. The stablecoin issuer argues that the UNODC report unfairly singles out USDT’s use in illicit activities, while ignoring its positive impact on these economies. Tether highlights the fact that the use of public blockchains makes every USDT transaction trackable, making it an impractical choice for illegal activities. In response to the UNODC’s findings, Tether emphasizes its collaboration with global enforcement agencies and its commitment to eradicating the criminal use of cryptocurrencies. The stablecoin issuer urges the UNODC to engage in a collaborative dialogue and consider working with the industry to improve anti-financial crime efforts.

Developing Economies Neglected by the Global Financial World

Tether, the issuer of the stablecoin USDT, has criticized the United Nations Office on Drugs and Crime (UNODC) study for singling out the stablecoin’s use in illicit activities. Tether argues that the UNODC report ignores the stablecoin’s “role in helping developing economies in emerging markets.” According to the stablecoin issuer, the global financial world often neglects these markets because “servicing such communities would be unprofitable.”

In its statement on Jan. 15, Tether rebuffed the UNODC assessment of USDT, stating that its collaboration with global enforcement agencies ensures “unparalleled monitoring” of the tokens. The use of public blockchains makes every tether transaction trackable thus making USDT “an impractical choice for illicit activities.”

As reported by Bitcoin.com News, the UNODC’s study also found USDT at the heart of many pig butchering scams. Jeremy Douglas, the UNODC’s regional representative for Southeast Asia, asserts that criminals use the stablecoin because they are aware that crypto-related regulations “are way behind illicit activity.”

Tether, however, counters the study’s findings by pointing to the freeze of tokens worth over $300 million in the past few months. For Tether, this act is proof of its commitment to eradicating the criminal use of cryptocurrencies. Meanwhile, the stablecoin issuer said it takes issue with what it sees as the UNODC’s bias against USDT.

“The UN’s analysis ignores the traceability of Tether tokens and the proven record Tether has of collaborating with law enforcement. Rather than focusing solely on risks the UN should also discuss how centralized stablecoins can improve anti-financial crime efforts,” the stablecoin issuer said.

Tether also urged the UNODC to consider working with the industry because doing so will help it “understand and execute modern strategies to fight financial crime.” Instead of attacking the stablecoin, the UNODC should instead consider engaging in a collaborative dialogue with the stablecoin issuer, Tether added.

Tether’s Criticism of UNODC Study

Tether’s criticism of the UNODC study centers around the report’s focus on the stablecoin’s use in illicit activities while neglecting its positive impact on developing economies in emerging markets. Tether argues that by overlooking the role of USDT in these markets, the global financial world perpetuates a cycle of neglect and inequality. By pointing to the lack of profitability in servicing these communities, Tether highlights the systemic issues that result in the exclusion of developing economies from the global financial system.

Tether’s Collaboration with Global Enforcement Agencies

Tether emphasizes its collaboration with global enforcement agencies as evidence of its commitment to ensuring the integrity of its stablecoin. By working closely with these agencies, Tether claims to have an unparalleled level of monitoring and oversight over USDT transactions. This collaboration helps to address the concerns surrounding the potential use of USDT for illicit activities by providing transparency and traceability to every transaction.

Every Tether Transaction is Trackable

Tether highlights the fact that every transaction involving USDT is trackable due to its use of public blockchains. This feature makes USDT an impractical choice for illicit activities as it leaves a clear digital trail that can be traced back to the parties involved. Tether argues that the traceability of USDT transactions sets it apart from other forms of digital currencies and reinforces its commitment to preventing and identifying any criminal use of its stablecoin.

USDT as an Impractical Choice for Illicit Activities

Tether reiterates that USDT is an impractical choice for illicit activities due to its trackability and transparency. The stablecoin issuer emphasizes that the use of public blockchains ensures that any attempt to engage in illicit activities using USDT would leave a digital footprint that can be easily traced and investigated. Tether argues that this feature makes USDT an unattractive option for criminals, as it significantly increases the risk of detection and prosecution.

UNODC Findings on USDT’s Role in Pig Butchering Scams

The UNODC’s study highlights USDT’s role in pig butchering scams, where criminals allegedly use the stablecoin to facilitate fraudulent activities. Tether acknowledges these findings but counters them by emphasizing the different measures it has taken to combat such criminal use. Tether points to the freeze of tokens worth over $300 million as a tangible proof of its commitment to addressing and eradicating the criminal use of USDT.

Tether’s Response to the Study’s Findings

Tether takes issue with what it perceives as the UNODC’s bias against USDT in its study. The stablecoin issuer argues that the UNODC’s analysis fails to consider the traceability of Tether tokens and the proven record Tether has of collaborating with law enforcement. Tether believes that a more comprehensive assessment of USDT should also include an examination of how centralized stablecoins can contribute to anti-financial crime efforts, rather than solely focusing on the potential risks associated with them.

Freeze of Tokens as Proof of Commitment to Eradicating Criminal Use

Tether highlights the freeze of tokens worth over $300 million as evidence of its commitment to eradicating the criminal use of USDT. By taking this action, Tether aims to demonstrate its proactive stance against any misuse of its stablecoin. The stablecoin issuer asserts that it actively monitors and investigates any suspicious activity and works closely with law enforcement agencies to ensure the integrity and legitimacy of USDT transactions.

Tether’s Issue with UNODC’s Bias Against USDT

Tether expresses its concern over what it perceives as the UNODC’s bias against USDT in its study. Tether believes that the UNODC’s analysis fails to fully acknowledge the traceability of Tether tokens and the effective collaboration between Tether and law enforcement agencies. By focusing solely on the risks associated with USDT, Tether argues that the UNODC overlooks the potential benefits that centralized stablecoins can bring to anti-financial crime efforts.

Tether’s Call for Collaboration with UNODC

Rather than criticizing the UNODC study, Tether calls for a collaborative dialogue with the organization. Tether believes that engaging in a partnership with the UNODC can help foster a better understanding of USDT and its potential role in fighting financial crime. By working together, Tether aims to contribute to the development of modern strategies and approaches to combat illicit activities in the digital currency space. Tether emphasizes the importance of industry collaboration and urges the UNODC to consider working with stablecoin issuers and other relevant stakeholders to achieve more effective and comprehensive solutions.

Conclusion

Tether’s criticism of the UNODC study reflects its concerns about the neglect of developing economies by the global financial world. The stablecoin issuer disputes the study’s focus on USDT’s involvement in illicit activities, arguing that it fails to recognize the positive impact of USDT in emerging markets. Tether emphasizes its collaboration with global enforcement agencies and the traceability of its stablecoin transactions. The freeze of tokens and the call for industry collaboration further demonstrate Tether’s commitment to eradicating the criminal use of USDT. Instead of attacking USDT, Tether urges the UNODC to engage in a collaborative dialogue to enhance understanding and develop modern strategies to combat financial crime.