📣 OFAC Could Exert Influence on Tether
posted 16 Feb 2024
JPMorgan bank analysts suggest that the US Department of Treasury's Office of Foreign Assets Control (OFAC) may wield certain influence over Tether, the issuer of the USDT stablecoin. For example, it could enforce compliance with sanctions and restrictions regarding various projects, individuals, and nations.
This possibility stems from OFAC's capacity to impact offshore companies and banks using the US dollar. Furthermore, the situation for USDT could deteriorate following the enactment of stablecoin regulations, which would broaden the application of the "Know Your Customer" (KYC) principle to decentralized finance (DeFi).
While direct legal actions against offshore entities and decentralized firms are complex, indirect measures and international cooperation could potentially hinder the usage of tether,the report indicates.
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