The world’s most popular stablecoin, Tether’s USDT, might be seeing a surge in use in countries facing US sanctions.
Tether’s USDT Usage Spikes in Sanctioned Nations?
Data from Chainalysis, a market intelligence platform, shows a pattern of increased USDT usage during the morning and early afternoon hours in cities like Moscow, Tehran, Kigali, and Istanbul. This timeframe aligns with the typical working hours in these locations, which include sanctioned countries like Russia and Iran.
However, Chainalysis clarifies that this doesn’t necessarily mean more people in these countries are using USDT. Anyone can access a crypto wallet from anywhere in the world, so the data could just reflect increased global usage.
Tether Under Investigation for Potential Sanctions Violations
This news comes amidst reports of US regulatory agencies investigating Tether for potential violations of anti-money laundering and sanctions laws. Some sources claim the Treasury Department is considering sanctioning Tether due to the widespread use of USDT by sanctioned entities.
Tether’s CEO, Paolo Ardoino, has dismissed these rumors, stating that the media is repeating old narratives. He insists that Tether actively collaborates with law enforcement to prevent misuse of USDT by rogue nations, terrorists, and criminals.
What Does This Mean for Tether?
The potential for increased USDT adoption in sanctioned countries raises questions about Tether’s compliance with US regulations. While the company maintains its commitment to fighting financial crime, the ongoing investigation and speculation about sanctions could impact its future.
It’s important to note that this is just speculation based on data analysis. Further investigation is needed to confirm whether USDT usage is actually increasing in sanctioned countries and if this poses a risk to US sanctions efforts.
