Tether’s USDT Sees Increased Popularity in Sanctioned Nations

Recent reports indicate that Tether’s USDT, the largest stablecoin by market capitalization, may be gaining traction in countries facing sanctions.

According to insights from Chainalysis, a market intelligence firm, there has been a noticeable increase in USDT usage aligned with the time zones of key cities in Eastern Europe, the Middle East, and Africa, which includes sanctioned nations like Russia and Iran.

The data highlights a trend in the initial use of digital wallets holding USDT from January 1 to October 8 of this year, suggesting heightened activity during the late morning and early afternoon hours in cities such as Moscow, Tehran, Kigali, and Istanbul.

However, a representative from Chainalysis cautioned that these findings are not conclusive. The observed increase in wallet activity does not inherently imply greater USDT adoption among sanctioned countries, as anyone can access cryptocurrency wallets globally at any time.

This development comes amidst ongoing investigations by U.S. regulatory bodies into Tether for potential breaches of anti-money laundering and sanctions regulations. Reports have emerged that the U.S. Treasury Department is considering sanctions against Tether due to the alleged extensive use of USDT by sanctioned entities.

In response to these claims, Tether’s CEO, Paolo Ardoino, has dismissed the allegations, stating that mainstream media is perpetuating outdated narratives. He emphasized that Tether maintains regular communication with law enforcement to combat the misuse of USDT by rogue states, terrorists, and criminals.