Tether Holdings Ltd., the company behind the USDT stablecoin, has entered into a partnership with Notabene, a service designed to share travel rule compliance, to comply with the FATF recommendations.
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The company said in announcement, the initiative is focused on combating money laundering and crime in cross-border cryptocurrency transactions. Particularly, Tether wants to find out how it can send other cryptocurrency companies the "required identifying information in respect of its customers in a secure manner."
"Because the Travel Rule traditionally applies to financial institutions, we see this as an opportune moment to foster cooperation across traditional and digital channels in order to create better services for customers globally," said Tether CCO, Leonardo Real.
The move comes shortly after Hindenburg Research, a financial forensic firm, announced plans to reward up to $1,000,000 any whistleblower for exclusive detail on USDT's reserves. The firm doubts about the legitimacy of Tether's backing "due to the company's sparse disclosures."
Particularly, Hindenburg Research doubts that Tether holds its reserves in commercial paper as big trading desks claimed they had "never worked with them or seen them in the market." So far, Tether still does not want to provide transparency to the public on its holdings, the firm emphasized.
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