Connect with us

Hi, what are you looking for?

Oracle of  Omaha SaysOracle of  Omaha Says

Editor's Pick

Tether to Freeze Addresses Evading Sanctions on Venezuelan Oil Exports

Tether, the issuer of the popular stablecoin USDT, has announced its intention to freeze addresses associated with sanctioned entities. 

The move comes in response to allegations that Venezuela’s state-run oil company, PDVSA, has been utilizing Tether to bypass sanctions imposed on its crude oil and fuel exports.

Tether has said it is committed to complying with the Office of Foreign Assets Control (OFAC) sanctions list and ensuring the prompt freezing of addresses linked to sanctioned entities.

USDT Used to Bypass Oil Sanctions


A recent Reuters report shed light on the alleged use of cryptocurrencies by PDVSA to facilitate its oil exports amidst newly reimposed oil sanctions by the United States. 

The U.S. Treasury Department has mandated that PDVSA customers and providers wind down transactions by May 31 due to Venezuela’s failure to implement electoral reforms.

According to anonymous sources cited in the report, the reimposed sanctions will pose challenges for Venezuela in expanding its oil production and exports, as companies will require U.S. authorizations to conduct business with the country. 

Important

I personally don’t like the sound of this at all.

Tether $usdt vows to freeze assets after Venezuela looks to crypto to bypass oil sanctions

Once this becomes real, this will give a green-light for serious limitations KYC, AML and crackdown on #stables pic.twitter.com/qqgbW6gj3W

— Reda | IPC (@Reda_IPC) April 23, 2024

In an effort to mitigate the risk of funds being frozen in foreign bank accounts as the sanctions take effect, PDVSA has reportedly turned to Tether for its oil sales.

The report further reveals that PDVSA has restructured its spot oil deals, requiring prepayment in USDT for exported cargo.

Additionally, the Venezuelan oil company allegedly mandates that new customers engaging in oil transactions hold cryptocurrency in a digital wallet. 

To meet these requirements, companies seeking to resume business with PDVSA after receiving a six-month licensing approval from the U.S. in October 2023 had to rely on intermediaries to facilitate cryptocurrency payments.

These developments follow previous reports in 2023 that tied cryptocurrency payments to a corruption scandal at PDVSA, involving the discovery of $21 billion in unaccounted receivables related to oil exports.

By freezing addresses associated with sanctioned entities, Tether aims to prevent the circumvention of sanctions and reinforce compliance efforts. 

Tether Surpasses $100 Billion Market Cap


In early March, Tether’s USDT surpassed a market capitalization of $100 billion, with an impressive growth of 9% year-to-date.

Comparatively, USDT maintains a lead of over $71 billion in market cap when compared to its closest competitor, USD Coin (USDC).

Despite the success, concerns about the quality of assets backing USDT have lingered in the crypto space. 

A recent United Nations report highlighted Tron’s popularity among cyber fraud and money laundering activities in Southeast Asia. 

Tether has refuted these claims, emphasizing its collaboration with law enforcement and the traceability of its token.

Last week, Tether partnered with digital assets infrastructure provider Fuze to enhance education and awareness surrounding digital assets in Turkey and the Middle East.

Per the announcement, the two companies aim to address various aspects of education within the digital asset realm, including cross-border payment solutions, compliance, regulatory framework development, and education for local financial institutions.

The post Tether to Freeze Addresses Evading Sanctions on Venezuelan Oil Exports appeared first on Cryptonews.

Enter Your Information Below To Receive Free Trading Ideas, Latest News And Articles.






    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.
    Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

    You May Also Like

    Latest News

    A former Republican legislative candidate who traveled to Washington for former President Donald Trump’s ‘Stop the Steal’ rally was arrested Friday and charged with...

    Latest News

    Abbe Lowell, Hunter Biden’s attorney, filed an ethics complaint Friday against Georgia Rep. Marjorie Taylor Green after she displayed censured nude photos of the president’s...

    Stock

    Even as U.S. inflation broadly cools, frozen vegetable prices are hot. The average shelf price for frozen veggies rose by 18% in the past year...

    Latest News

    President Biden has overruled the Pentagon and chosen Adm. Lisa Franchetti to lead the Navy, making her the first woman, if she’s confirmed, to...

    Disclaimer: Oracleofomahasays.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.


    Copyright © 2024 Oracleofomahasays.com