My stablecoin, my rules – Circle CEO about the possibility of blocking USDC users2 min read
Journalist Anthony Sassano claimed that user accounts with USDC, Circle’s stablecoin, can be blocked. According to Sassano, USDC broadcaster Circle can freeze user funds “at any address and at any time, for any reason.”
He added that this is the risk associated with using any centralized service. Circle CEO and co-founder Jeremy Allaire responded to the complaint calling Sassano’s claims inaccurate and unhelpful.
However, rather than directly addressing Sassano’s claims, Allaire said USDC is safe. Using a Q&A post, Allaire confirmed that USDC balances can be blocked.
“If I use USDC in my protocol or application, can my protocol or application be blocked?” the question reads.
Allaire circles in response, but ends up saying yes. However, he considers that the block only occurs in the face of legal requirements:
“Circle and the Center Consortium only block addresses when legally required,” he said in response.
In addition, Allaire stated that the blockade can also be done through court orders.
“Of the total $53 billion in circulation, only $2.7 million USDC is currently blocked,” says Allaire.
Furthermore, he says that a total of 38 unique addresses have been blocked so far. But all blocks comply with OFAC sanctions and court orders.
According to Circle’s co-founder, the company has a legal obligation to apply Know Your Customer (KYC) controls. They also screen users and monitor all of their transactions.
Sassano, in turn, highlighted that Allaire’s response confirms his allegations and allegations. He said Allaire went even further than he did and even detailed the amount of USDC blocked.
“There is no FUD, your USDC may suffer from locks. This is what gives trust in centralized entities,” she concluded.
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