Tether Combats Money Laundering With New Integration
The stablecoin provider is utilizing Notabene to tackle crime in cross-border transactions.
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Tether is integrating Notabene, helping the company comply with Financial Action Task Force guidelines and prevent money laundering and cross-border crime.
Tether Tackles Money Laundering
Tether wants to crack down on illegal transfers.
The industry’s biggest stablecoin provider announced Tuesday that it would be integrating payment security provider Notabene’s travel rule solution. The move will help Tether comply with Financial Action Task Force (FATF) guidelines and tackle money laundering activities using its USDT stablecoin.
Notabene’s solution will allow Tether to securely transmit user data for large crypto transfers to Virtual Asset Service Providers (VASPs). This will allow the company to comply with new guidelines set by the Financial Action Task Force, a global financial watchdog.
Under the FATF’s travel rule guidelines, VASPs dealing with virtual assets should transmit specific customer data between counterparties for transactions over a certain threshold. Doing so will help Tether crackdown on money laundering and cross-border crime, helping protect its customers.
Commenting on the integration with Notabene, Leonardo Real, CCO of Tether, stated:
“Because the Travel Rule traditionally applies to financial institutions, we see this as an opportune moment to foster cooperation across traditional and digital channels in order to create better services for customers globally. We are proud to lead the charge on behalf of all stablecoins in order to make a positive change towards protecting our clients.”
Tether’s willingness to comply with the FATF guidelines comes in contrast to previous controversies. Earlier this month, Tether came under fire after a Bloomberg report alleged that the company held billions of dollars worth of Chinese debt as the Evergrande crisis shook international markets. Additionally, Tether and Bitfinex were recently fined a combined $42.5 million by the Commodity Futures Trading Commission for misrepresenting the backing behind Tether’s USDT stablecoin.
Disclaimer: At the time of writing this feature, the author held USDT and several other cryptocurrencies.