Tether, the largest stablecoin, has made a new move while it has been on the agenda about whether its reserves are backed by real dollars.
Stating that it always adheres to international regulations and rules, the company announced that it has started testing new solutions to contribute to the fight against money laundering and crime in cross-border transfer transactions.
It was stated that this move, made to comply with the latest standards and guidelines published by the Financial Action Task Force (FATF), aims to assist in the fight against money laundering, terrorist financing and compliance with sanctions measures.
The following statements were used in the announcement made by Tether:
“Tether will begin testing Notabene’s protocol-agnostic solution to combat money laundering and crime in cross-border VASP-VASP transactions. Notabene will enable Tether to test complex crypto use cases in a collaborative, low-risk environment. Tether will use Notabene’s solution to see how it can securely send necessary identifying information about their customers to other VASPs to ensure customer protection, particularly regarding transactions by Virtual Asset Service Providers (VASPs).
Tether CCO Leonardo Real used the following statements in his statement on the subject:
“It’s important that we work with other great VASPS to build this industry from the ground up. As pioneers and leaders of blockchain technology, we are committed to not only keeping up with new rules, but helping to shape them. As transfer rules have traditionally applied to financial institutions, we see this as an appropriate moment to encourage collaboration between traditional and digital channels to create better services for customers globally. We are proud to take responsibility on behalf of all stablecoins to make positive change to protect our customers.”
Notabene will bring a trusted data layer to blockchain transactions, helping Tether manage counterparty risk and providing its customers with a best-in-class transfer experience.
After the tests, the solution is expected to be integrated into the network.
According to the latest reports in the US mainstream media, Janet Yellen and Biden’s team approached after their work on stablecoin regulations. While Tether is making moves to keep up with regulatory requirements, it remains unclear what tough requirements US regulators will impose.
SEC Chairman Gary Gensler also recently targeted stablecoins and issued warnings.