Tether, the largest stablecoin issuer behind USDT, has reportedly changed its terms of service (ToS) in Singapore. An email shared on September 25 by the CEO of decentralized finance protocol Cake revealed that Tether’s terms of service had changed, prohibiting certain customer groups from redeeming USDT.
Dr. Julian Hosp, CEO of Cake Group, shared an email from Tether on social media platform
Okay, so, I can’t tell you if it’s redeemable USDT Enter Dollar is actually possible because in #Singaporethis is a recent change @Tether_to ToS from one day to another. interesting. pic.twitter.com/1YzNqkbjMO
— Dr. Julian Hosp (@julianhosp) September 25, 2023
Hosp noted in his X post that based on recent emails, they are not sure if USDT can be exchanged for USD in Singapore.
Key changes to Tether’s terms of service include limiting its onboarding criteria and that “companies controlled by another entity, directors and shareholders resident in Singapore are no longer allowed to be Tether customers.”
The term “controlled by another entity” confused many in the crypto community, including Cake DeFi, who were told “controlled by another company in Singapore.” Therefore, you will not be allowed to issue or redeem from the platform. “
related: Singapore’s central bank imposes 9-year ban on founder of Three Arrows
Many users on
Tether restricts Singapore customers one month after massive money laundering bust in Singapore
Cryptocurrency companies have flocked to Singapore recently in search of friendlier regulations.This could be a huge blow
Crypto cartels’ door to Asia closing as HKG cracks down https://t.co/yVu79bJHgb
— Rho Rider (@RhoRider) September 25, 2023
Another user pointed out that the change in USDT redemption terms may be an issue specific to Cake DeFi, noting that the DeFi protocol is marked as enhanced due diligence (EDD), so it may be a cooperation issue between the two companies.
this could be a @cakedefi Specific issues. It is labeled EDD – Enhanced DD. I’m not saying there’s anything wrong with Cake, just that it may be a specific tether/cake relationship issue.
— Hayden (@hayden_9776) September 25, 2023
Cointelegraph reached out to Tether to confirm the email shared by Cake Group’s COO and inquire about changes to its terms of service, but has yet to receive a response.
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