Tether cryptocurrency emerges as money laundering fears rise

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TOKYO — The use of cryptocurrencies is increasing around the world. While the flow of these assets is not managed by individual governments or central banks, authorities are considering tightening rules as the risk of cryptocurrencies being used in money laundering and to fund crime are increasing.Tether is an emerging cryptocurrency issued by a Hong Kong company, Tether Limited, and it now has a larger presence than Bitcoin.Tether is also a stablecoin: a new type of cryptocurrency whose value is fixed against a certain asset. One Tether coin has the same value as one U.S. dollar. By paying $1 to Tether Limited, a person receives one Tether, and its value is pegged to the dollar.Some are dubious as to whether Tether Limited has enough dollars to match the value of coins issued, but Tether transactions are increasing nonetheless.A more worrying issue is that individuals can trade cryptocurrencies on the internet without using bank accounts. There are concerns that people in China are using Tether to smuggle money out of the country. Intergovernmental organization the Financial Action Task Force thinks that such transactions could be related to crime, as they are difficult to trace.The U.S. …

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