March 29, 2024

Tether Connects Chainalysis Tools for AML Compliance

Stablecoin issuer Tether has partnered with analytics firm Chainalysis to improve efficiencyits anti-money laundering tools.

Companies said this week that Tether willapply the Know Your Transaction (KYT) tool from Chainalysis to analyze the work of token issuers. This will allow the company to track activity and “quickly understand the risk profile of each token holder.”

USDT - pegged stablecoin,released by Tether, runs on the Omni, Ehereum, EOS, Liquid, Tron, and Algorand blockchains. The company also issued tokens tied to gold (XAUT), euros (EURT) and Chinese yuan (CNHT).

"This solution allows us to ensure the implementation of a security system that complies with legal requirements, which contributes to thetrust from regulators, law enforcement and users," the CTO said in a statementTether by Paolo Ardoino. This is achieved without sharing our user's identity information, as the data is only stored on our servers."

Chainalysis has been developing rapidly sinceeducation five years ago. The company offers its services and tools for exchanges, financial and government institutions in 40 different countries. Recently, a UK court ordered the Bitfinex exchange to freeze BTC in the amount of $ 860,000. The crypto assets to be frozen were obtained as a result of extortion and tracked using Chainalysis products.

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