Leading stablecoin issuer Tether">Tether announced it has instituted a voluntary wallet freezing policy impacting anyone sanctioned by the United States’ Office of Foreign Assets Control (OFAC), including parties tied to countries like Iran, North Korea, Syria and Russia. The move expands Tether’s existing controls to further strengthen cooperation with global regulators.
According to Tether’s Dec. 9 blog post, as of Dec. 1st the company has proactively implemented restrictions around secondary market activity connected to entries on OFAC’s Specially Designated Nationals list. This supplements other coordination with law enforcement like transaction monitoring.
CEO Paolo Ardoino framed the unilateral call to freeze associated wallets as an effort to promote broader responsible adoption of stablecoin technology. It diverges from Tether’s August 2022 stance avoiding voluntary restrictions on sanctioned addresses without legal directive.
By self-initiating wallet lockouts for named OFAC designees, Tether seeks to reinforce its positioning as a compliant partner to authorities like the U.S. Treasury despite its offshore base. As scrutiny of the $90 billion stablecoin giant persists, driving enhanced collaboration could help ease regulatory pressure.
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