Tether Updates Terms of Service in Singapore, Blocks Certain Customers from Redeeming USDT
Summary:
Tether, the leading stablecoin issuer, has updated its terms of service (ToS) in Singapore, blocking certain customers from redeeming USDT. The news was disclosed by Cake Group CEO, Dr. Julian Hosp. The change in ToS includes restricting "corporates controlled by another entity, directors, and shareholders in Singapore" from being Tether customers. Many perceive this move as a reaction to a significant cryptocurrency money laundering scandal in Singapore. The relation between this alteration and Cake DeFi's situation, tagged for enhanced due diligence (EDD), is also being explored.
Reports are indicating that Tether, the leading stablecoin creator behind USDT, recently overhauled its terms of service (ToS) in Singapore. These changes to Tether's ToS, which prevent certain customers from redeeming USDT, were shared on September 25, through an email by the CEO of the decentralized finance protocol, Cake. The head of Cake Group, Dr. Julian Hosp, publicized the email he received from Tether on the social media platform X (previously known as Twitter), which said they were unable to redeem USDT for USD due to alterations to the stablecoin issuer's ToS.
Dr. Hosp's post on X suggested that the email has left them in uncertainty about their ability to exchange USDT for USD in Singapore. The primary modifications to Tether's ToS included limited onboarding standards, and disallowed "corporates controlled by another entity, directors, and shareholders residing in Singapore" from becoming Tether customers. The phrase "controlled by another entity" caused a ripple of confusion within the crypto community, including Cake DeFi, which was told that they were regulated by another company in Singapore and thus not eligible for issuance or redemption on the platform.
Notably, users on X perceived Tether's adjustments to its ToS as a reaction to one of Singapore's biggest cryptocurrency money laundering scandals, where confiscated assets have risen to over $2 billion. A month post this significant monetary seizure, Tether decided to restrict its Singapore customers.
One user suggested the changes to the USDT redemption term might be a problem specific to Cake DeFi. They noted that the DeFi protocol is marked as requiring enhanced due diligence (EDD), which could cause issues with the partnership between the two companies.
In response to this, Cointelegraph reached out to Tether to confirm the accuracy of the email shared by the co-executive of Cake Group, and to find out more about the alterations to their ToS. A reply is still awaited.
Note: The digital copy of this article can be collected as an NFT to document this moment in history and to endorse independent journalistic reporting in the field of cryptocurrency. Also check out: Asia Express, a magazine covering Tencent's AI powerhouse, a busted $83M scam, and China's ban on influencers.
Published At
9/25/2023 9:42:55 AM
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