Tether to Freeze Sanctioned Addresses Amid Venezuela’s Crypto Oil Exports
Tether has announced plans to freeze addresses associated with sanctioned entities, following reports that Venezuela’s state-run oil company was using the stablecoin to bypass sanctions.
The move comes after an exclusive Reuters report revealed that PDVSA, Venezuela’s state-run oil company, has been using cryptocurrencies to facilitate crude oil and fuel exports.
The U.S. Treasury Department has demanded that PDVSA customers and providers wind down transactions by May 31 due to Venezuela’s failure to implement electoral reforms.
According to the report, the reimposed sanctions will make it more difficult for Venezuela to increase its oil product and export, as companies will require U.S. authorizations to do business with the South American nation.
PDVSA has been transitioning its oil sales to USDT to mitigate the risk of funds being frozen in foreign bank accounts as new sanctions take effect. Reuters’ sources also claim that PDVSA has reworked its spot oil deals in 2024 to a contract model that requires prepayment for exported cargo in USDT.
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Additionally, the report suggests that the Venezuelan state-run oil firm requires new customers looking to conduct oil transactions to hold cryptocurrency in a digital wallet.
Companies seeking to resume business with PDVSA following a six-month licensing approval from the U.S. in October 2023 had to resort to intermediaries to carry out the cryptocurrency payment requirements.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
