The new report focuses on Tether’s legal status

nWalkout commentary: One week, the issue of the dollar linked with the currency USDT Tether concern. Two recent reports also analyzed Tether’s legal status and its blockchain ledger. In one of these reports, Nicholas Weaver, a computer security researcher at the Berkeley Institute for Computer Science, analyzed the possibility of a U.S. regulatory investigation into the company and compared early projects that had not been approved by the government to issue a self-issued currency. Describes the possible consequences of Tether’s investigation.n
nTranslation: Clovern
Tether, the company responsible for issuing dollar-linked cryptocurrencies, took up almost a week’s news coverage. In the past 24 hours, two separate reports on the current status of Tether and its USDT tokens have been published. One of them carefully examined the legal status of the company while the other explored its blockchain. In the meantime, Upbit Exchange also assures its clients that if the USDT is withdrawn, the Exchange will also guarantee all USD deposits.n
Tether abdominal enemiesn
Nicholas Weaver is a Computer Security Researcher at Berkeley International Computer Science Institute. On Thursday, he published a “Lawfareblog” article on the opinion that Tether may be the main regulator of U.S. regulators. And recently there was news that Tether was summoned last year as speculation about the company’s operations grew. It is also not uncommon for summoners to survive in the United States, nor does such summons per se indicate that financial regulators want to shut down these companies. But neither Tether nor the U.S. regulator made any formal comments about it, triggering speculation by onlookers.n

Nicholas Weavern
In Nicholas Weaver’s opinion:n
n”Because of the use of cryptocurrencies in criminal activities, most cryptocurrencies have been cut off from traditional banking systems, and exchanges that have access to traditional banking systems must also generate IRS reports for certain size transactions and report suspicious But there is still a lot of work to do to completely dismantle unregulated exchanges – and Tether’s token should be the government’s next target. “n
nU.S. regulators should investigate, in particular, the companies behind Tether to see if they violated the Patriot Act’s provisions on AML and other financial fraud laws. The prosecution of this may have the potential to stop this criminal plan, but it will also have a tremendous impact on exchanges that rely on Tether.n
Weaver then wrote:n
n”Tether seems most likely to be a scam for money laundering, or a Wildcat bank that prints freely without real funding.n
nIn either case, the U.S. government can and should intervene. “And he contrasts with the Liberty Reserve, a pilot project that voluntarily issued money without government approval. The outcome of the project was not very good until US government officials accused them of not laundering their money With permission to provide financial services When the company raided the company’s headquarters in Costa Rica, the platform had accumulated more than 1 million users and was closed in 2013 when almost everyone lost everything.n
Liberty’s lossn
The fatal weakness of Liberty Reserve is that it is central, so there is a single point of failure. When Nakamoto invented Bitcoin, the Liberty project has been launched for three years, and Nakamoto did not make the same mistake. Tether, an organization that relies on some form of formal banking technical rules – but the exact nature of these rules is rather vague – does not qualify as such. If the U.S. regulator decides to pursue the company’s money-laundering (financial companies will be hit hard by any allegation whether guilty or not) or to accuse them of faking counterfeit money by imitating the U.S. dollar, the company becomes the U.S. regulator Chase the targetn
Nicholas Weaver continues:n
nTether is not only theoretically available for money laundering but its use as a reserve currency lacking a banking services exchange also shows the value of money laundering.Tether is primarily used for electronic financial transactions that bypass the inherent oversight in the banking system. Kraken, the cryptocurrency exchange that has access to banking services, accepts Tether for trading, and the only currency Tether trades on the exchange is the U.S. dollar. At Kraken, users can not use Tether to buy different cryptocurrencies directly. “n
Explore the Tether bookn

In his commentary on Tether, Weaver also wrote:n
n”Although Liberty Reserve uses a private ledger to track balances, Tether uses a public anonymous account.” Tether did not know the middle owner and only those who claimed Tether tokens knew it. If anything, this intentional lack of understanding It shows more criminal responsibility. “n
nAlex Vikati, a data researcher, mentioned this account in an article published on Thursday, drawing everyone’s attention.n

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