ofacUSDT. By playing with fire, you get burned. This is more or less the situation in which the brand new – and very regulatory zealous – boss of Tether, Paolo Ardoino. A man whose arrival at the helm of the world’s first stablecoin issuer coincides with more than doubtful connections. For example, the United States Office of Foreign Assets Control (OFAC), whose company announced last December that it will freeze all sanctioned crypto wallets. A decision that is definitely not unanimous. Because the investment bank JP Morgan is warning of the risks of offshore control – not always very clear – from this repressive body made in the US.
The relationship between Tether and OFAC is problematic
The Office of Foreign Assets Control (OFAC) presents itself as a financial control agency under the United States Department of the Treasury. But in the mouth of the whistleblower Julien Assangeits activity is much more similar to a formidable economic weapon of war in the hands of the US Central Bank.
A cumbersome friend, especially in the sector of cryptocurrencies. However, it is in relation to this structure that the new boss of Tether, Paolo Ardoino, expressed his desire to “ launch a new voluntary wallet freezing policy » at the end of last year.
In his words, this ultimately amounted to “protecting the cryptocurrency ecosystem.” » A gentle irony, if we consider that this ambition is based on an active partnership between the most obscure crypto company and a body in charge of crack down on financial activities considered embarrassing by the world’s leading economic power… deemed hostile to cryptocurrencies.
This is the reason why voices are raised to indicate the fact that “ US regulators may exercise some control over offshore use of Tether via OFAC. » A warning issued by the investment bank JP Morgan. And Paolo Ardoino’s reaction is… equal to himself!
A simple question of “Jealousy”
Because it is not necessary not confuse too fast criminal activity and addresses sanctioned by the United States Office of Foreign Assets Control (OFAC). Indeed, this measure was, for example, taken against the developers of the Tornado Cash blender. Everyone will measure the validity – and reasons – of this choice according to their own criteria…
At the same time, this is not the first time that the JP Morgan bank issues a warning about the Tether company. In fact, it indicated at the beginning of February his concern about the dominance of USDT, considered worrying. This addition of OFAC simply completes a list that is growing to the detriment of the issuer of the USDT stablecoin.
Allegations to which Paolo Ardoino did not fail to respond. And according to the latter, all this masquerade orchestrated by the JP Morgan bank would be based on a single element: jealousy.
“JPMorgan’s current concerns appear to have more to do with a jealousy over developments in financial and payment services, which they have ignored for a decade. And now they’re upset because it generated a lot of interest. If I were them, I would be more concerned about their total fines of $39 billion. »
Paolo Ardoino
At the same time, the regulatory strategy director of Circle (USDT)Caroline Hill, has just ask to the United States Congress launch an investigation into the Tether company and its banking partners. A sort of fool’s game, where competition from a booming sector triggers double-edged strategies.
In any case, the JP Morgan bank indicates his desire to abandon USDT. This is for the benefit of “stablecoins with more transparency and greater compliance with new regulatory standards. » Because the attraction exerted by the current leader of this economy of digital stability could well suffer froma stricter legal framework in the United States. The bets have been made…