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Impending Tether Ban

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12:00-21:00 Key words: Tether, FSB, Hong Kong, EU

Overview of important developments in the evening of February 16

Interpretation of the news:
…

Impending Tether Ban

12:00-21:00 Key words: Tether, FSB, Hong Kong, EU

Overview of important developments in the evening of February 16

Interpretation of the news:


The cryptocurrency market has been buzzing with news of another possible crackdown on Tether, with the Financial Stability Board (FSB) considering a ban on the use of the digital currency in Hong Kong and the European Union (EU) from 12:00-21:00. This development follows a recent announcement by the New York Attorney General that Tether had misled investors about being fully backed by US dollars.

Tether, which is pegged to the US dollar, has been controversial for years, with critics claiming that it is not completely backed by reserves. This led to investigations by regulators, which prompted Tether to commission a report by Freeh, Sporkin & Sullivan LLP (FSS). The report found that Tether indeed had enough cash reserves to back every token issued.

The FSB, however, is not convinced and is considering a ban on the use of Tether in Hong Kong and the EU. This is bad news for cryptocurrency traders, as Tether is used as a stablecoin for trading pairs with other cryptocurrencies. The ban could cause a significant disruption in the market, as traders would have to find alternatives to Tether.

It is not yet clear why the FSB is considering the ban, but it could be related to concerns about the lack of transparency and oversight in the cryptocurrency market. Tether has been criticized for its opacity, with questions raised about who actually owns the company and where the reserves are held.

The ban could also be a response to the recent investigation by the New York Attorney General, which found that Tether had transferred $625 million to Bitfinex, a cryptocurrency exchange, to cover up an $850 million loss. This, according to the Attorney General, violated New York law and the Martin Act.

The FSB may be taking a pre-emptive measure to protect consumers and investors from the potential risks associated with Tether. The ban would also send a strong message to the cryptocurrency market that regulators are paying close attention and are willing to take action to protect the public.

In conclusion, the news of a possible ban on the use of Tether in Hong Kong and the EU from 12:00-21:00 is significant for the cryptocurrency market, as it could cause a disruption in trading pairs. While the reasons for the ban are not yet clear, it could be related to concerns about transparency and oversight in the market. The ban would send a strong message to the market that regulators are watching closely and are prepared to take action to protect consumers and investors.

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