The cryptocurrency Tether, which is based on the US dollar, has declared a fresh trade ban. The firm has been under investigation for its connections to Bitfinex and the price of Bitcoin, and this move is purportedly in reaction to a recent price spike.
In order to maintain the proper regulatory environment, Tether will be temporarily banning all fiat withdrawals and deposits, as disclosed by the company's CEO, JL van der Velde. This occurs at the same time as cryptocurrency markets are seeing a sharp decline due to many hacks on exchanges and other sites.
Tether declared in a formal statement that was published on Medium, We have been monitoring recent market fluctuations and their impact on Tether's circulating token supply. The company went on to say that it took this choice after seeing how traders were hedging their cryptocurrency bets on its platform.
Currently ranked in the top 10 coins by transaction volume and with a market capitalization of $8 billion, Tether is one of the most well-liked cryptocurrencies on Coinmarketcap. But because of its ties to Bitfinex, an exchange that was also hacked earlier this year, it has drawn criticism in recent weeks.