United

BlackRock

You can also read this news on COINTURK NEWS: <a href="https://en.coin-turk.com/tether-reports-massive-profits-raises-concerns-over-regulatory-oversight/" data-wpel-link="internal">Tether Reports Massive Profits, Raises Concerns Over Regulatory Oversight</a> 
According to a recent Wall Street Journal report, <a href="https://en.coin-turk.com/tether-the-largest-stablecoin-issuer-surpasses-the-100-reserve-ratio/" data-wpel-link="internal">Tether</a> (<a href="https://en.coin-turk.com/impending-shift-in-the-crypto-market-banks-poised-to-challenge-tethers-dominance/" data-wpel-link="internal">USDT</a>), the largest stablecoin by market capitalization, has astonishingly reported a net profit of $6.2 billion for 2023. This figure not only eclipses the $5.5 billion net profit of financial giant BlackRock but also accentuates growing concerns about Tether’s potential role in undermining the United States’ global sanction efforts. 
<h2 style="text-align: justify" id="strong-tether-s-usdt-and-lack-of-oversight-strong">Tether’s USDT and Lack of Oversight</h2> 
The report highlighted that while Tether conducts thorough vetting of its direct clients, it does not regulate the extensive secondary market where most USDT transactions occur. This lack of oversight has raised red flags among regulators, especially since Tether’s network processed almost as many money transactions as Visa cards throughout 2023. Furthermore, the company operates with less than 100 employees, a stark contrast to BlackRock’s workforce, showcasing Tether’s immense scale achieved with minimal staff. 
<img loading="lazy" loading="lazy" decoding="async" class="aligncenter wp-image-388528" src="https://coin-turk.com/wp-content/uploads/2024/09/Tether.png" alt="" width="503" height="556"> 
A United Nations report from January 2023 indicated that Tether’s USDT has become a preferred tool for money laundering in Southeast Asia. Its widespread usage in unregulated secondary markets positions the stablecoin as a prime candidate for facilitating illegal activities, including money laundering and evading sanctions. 
<h2 style="text-align: justify" id="strong-inability-to-fully-mitigate-related-risks-strong">Inability to Fully Mitigate Related Risks</h2> 
Although Tether can track all transactions on its public <a href="https://en.coin-turk.com/ais-growing-influence-on-online-interactions-raises-concerns-and-calls-for-security-measures/" data-wpel-link="internal">blockchain</a> ledger and has the authority to freeze or destroy USDT in any wallet, this power is insufficient to eliminate associated risks completely. 
The Wall Street Journal emphasized the broader implications of Tether’s operations. As the U.S. government intensifies its scrutiny of organizations involved in arms trafficking, sanction evasion, and financial fraud, Tether’s role in facilitating large-scale, unregulated transactions has emerged as a significant concern. 
The increasing footprint of stablecoins in a largely unregulated financial ecosystem seems likely to hinder the U.S.’s efforts to effectively enforce global financial sanctions. 
The post <a href="https://en.coin-turk.com/tether-reports-massive-profits-raises-concerns-over-regulatory-oversight/" data-wpel-link="internal">Tether Reports Massive Profits, Raises Concerns Over Regulatory Oversight</a> appeared first on <a href="https://en.coin-turk.com" data-wpel-link="internal">COINTURK NEWS</a>.

Tether Reports Massive Profits, Raises Concerns Over Regulatory Oversight

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