Tether to track USDT transactions, and US authorities want to strengthen control over the crypto sphere
Tether to track USDT transactions
The company will implement a compliance tool to track suspicious transactions in USDT tokens. The goal is to meet the requirements of regulators in various countries. To do this, Tether will use the Know Your Transaction software created by firm Chainalysis.
“Know Your Transaction (KYT) is a real-time AML compliance solution for montiroinga token’s full lifecycle, from issuance to redemption, ” Chainalysis said.
According to the Tether company, the privacy of USDT owners will not be affected. Earlier, the British regulator suspended ePayments system due to non-compliance with the requirements of the anti-money laundering law.
Trading volumes on cryptocurrency exchanges increase by 70%
Since the beginning of 2020, trade on spot cryptocurrency exchanges has increased by 70% and reached a six-month peak.
More than half of the volume falls on the Binance exchange, whose share in the total turnover has also grown, according to a research by The Block. Regulated platforms of derivatives also see an increase of activity. Open interest at Bakkt reached a record $ 12 million at the end of January, and the average trading volume went up to $26.45 million.
Things are going well on CME too — in January the average trade turnover increased by 144% to $458 million. BitMEX is also not far behind — the level of trading in perpetual BTC swaps increased by 55% in the first month of 2020.
USA to release new cryptocurrency regulation rules
The US Department of the Treasury and the Financial Crimes Enforcement Network (FinCEN) are developing new requirements related to cryptocurrency. This was stated by Treasury Secretary Steven Mnuchin.
He did not disclose the details but noted that departments are paying great attention to working out this issue and are working closely with other watchdogs. Mnuchin also added that he shares the concerns of Congress over the use of digital currencies in illegal operations.
Earlier, the administration of US President Donald Trump proposed budget proposal for 2021, which includes strengthening control over cryptocurrency transactions.