After the crisis experienced by the traditional finance system due to the pandemic, cryptos were widely adopted and attracted many authorities. Since then, the space has been closely monitored in an attempt to bring it under control. While the crypto companies were under the radar, it appears that stablecoins may soon join the fray.
As per some reports, the largest stablecoin, USDT, has been widely used by Russia to send money to the west, evading KYC & sanctions imposed. Nearly 3 OTC (over-the-counter) brokers have been identified in Moscow who sell thousands of dollars in stablecoins for cash and further exchange it to the UK for pounds sterling. These are all carried out for cash but without any KYC.
So with this, the global regulatory bodies may soon shift their focus onto USDT and search for a strong excuse to ban it. The USDT dominance is waning and has been under bearish influence for a quite long time as traders are now more focused on Bitcoin & other altcoins. However, if the authorities hit hard on Tether, the whole crypto market may come under threat.
Presently, the market cap and the USDT dominance, are both falling apart and may soon reach lower support as they are both trading along the descending trend line. If this happens, then more problems could arise in the coming days.
Therefore, cryptos may soon come under attack from all sides of technology, despite their constructive intentions. Hence, if the levels drop as mentioned above, then there is a fair chance that a significant crash may chase the crypto space.