In news that will surprise absolutely no one, The Wall Street Journal reported last week that the cryptocurrency company, Tether, is being investigated for violations of international sanctions and anti-money laundering rules.
The story highlighted an investigation by prosecutors from the U.S. Attorney’s office in Manhattan and the U.S. Treasury Department for the use of the platform to fund illegal activities such as the drug trade, terrorism and hacking.
Tether is a stablecoin, meaning its value is “tethered” to the value of the United States Dollar. It is the world’s most traded cryptocurrency, with up to $190 billion in transactions each day.
“Even as federal lawmakers are rushing to frame a new regulatory regime for stablecoins, we keep finding more evidence that bad actors are one step ahead of the game,” said IBAT Director of Federal and Regulatory Advocacy, Bill Briggs. “Cryptocurrency was built for obfuscation. We struggle enough to keep the bad guys out of traditional finance. Policymakers need to pause and consider the drawbacks of legitimizing stablecoins and driving more domestic and international transactions that way,” Briggs added.
