Stablecoin issuer Tether has reportedly made alterations to its terms of service (ToS) in Singapore. An email shared by the CEO of decentralized finance protocol Cake DeFi on September 25th reveals modifications to the company’s ToS that now forbid specific customer groups from redeeming Tether.
Cake co-founder and CEO Julian Hosp shared the email received from Tether, wherein the company stated its inability to redeem USDT for United States dollars due to changes in its ToS. In a post on X (formerly Twitter), Hosp expressed uncertainty about Cake’s ability to redeem USDT into U.S. dollars due to its Singaporean base.
The significant amendments to Tether’s ToS involve tightening its onboarding criteria, and one notable change states that corporations controlled by another entity, directors, and shareholders residing in Singapore are no longer permitted to be Tether customers.
The term controlled by another entity raised confusion within the cryptocurrency community, including Cake DeFi, which was informed that it is considered to be controlled by another corporation in Singapore. Consequently, Cake DeFi will not be eligible to receive or redeem funds from the platform.
X users pointed out that Tether’s recent ToS revision coincides with a substantial cryptocurrency money laundering scandal in Singapore, where seized assets from the bust have exceeded $2 billion. Some speculate that this could be indicative of a partnership issue between the two companies.
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