Stablecoin issuer Tether has made significant alterations to its terms of service (ToS) in Singapore, according to an email disclosed by Julian Hosp, the CEO of decentralized finance platform Cake DeFi, on September 25th.
These amendments impose restrictions on specific customer groups, preventing them from redeeming Tether.
In the email from Tether, it was explicitly stated that the company could no longer facilitate the redemption of USDT for United States dollars due to the adjustments in its ToS.
This modification raised concerns for Cake DeFi, headquartered in Singapore, as its CEO Julian Hosp expressed uncertainty regarding the platform’s ability to redeem USDT into U.S. dollars under the new terms.
The principal changes in Tether’s ToS revolve around tightening onboarding standards and introducing a clause stating that “corporates controlled by another entity, directors, and shareholders residing in Singapore are no longer permitted to be Tether customers.”
The ambiguity of the term “controlled by another entity” baffled many within the cryptocurrency community, including Cake DeFi, which was informed that it fell under this category, rendering it ineligible for issuance or redemption through the Tether platform.
This adjustment in Tether’s ToS has attracted significant attention from X users, formerly known as Twitter, especially considering its timing in light of a major cryptocurrency money laundering scandal in Singapore.
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The assets seized during the investigation have now ballooned to an astonishing $2 billion, further intensifying scrutiny on cryptocurrency activities within the country.
Some speculate that the changes pertaining to USDT redemption could be specific to Cake DeFi, suggesting that the decentralized finance protocol may have triggered enhanced due diligence (EDD) measures, potentially signaling an underlying partnership issue between the two entities.
Cointelegraph made efforts to reach out to Tether for comments regarding the email shared by Cake DeFi’s CEO and the recent adjustments to its ToS but had not received a response as of the publication of this article.
In conclusion, Tether’s revised terms of service in Singapore have caused uncertainty and speculation within the cryptocurrency community, particularly with regards to USDT redemption.
The implications of these changes, and their potential impact on Cake DeFi and other affected parties, remain unclear pending further clarification from Tether.
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