Stablecoin issuer Tether has reportedly changed its terms of service (ToS) in Singapore. An email shared earlier today by the CEO of decentralized finance protocol Cake DeFi shows changes to the company’s Terms of Service that will ban some users from using Tether (USDT).
Cake co-founder and CEO Julian Hosp shared the email he received from Tether. You cannot convert USDT to USD due to changes in your Terms of Service.
Okay, so I can’t tell you if it’s actually possible to convert $USDT to $USD because I’m located in #Singapore and recently @Tether_to’s Terms of Service changed all the time. Interesting.
Okay I know, I can’t tell you if you use the money $USDT into $USD It is actually possible because #SingaporeThis was a recent change. @Tether_to Terms of Service from one day to the next. Interesting. pic.twitter.com/1YzNqkbjMO
—Dr. Julian Hosp (@julianhosp) September 25, 2023
In a post
Major changes to Tether’s Terms of Service include tightening participation standards and “Companies controlled by another entity, directors and shareholders domiciled in Singapore can no longer be considered Tether users.”
The term “controlled by another entity” has confused many in the crypto community, including Cake DeFi, where this is reportedly the case. “it is controlled by another Singapore company. As a result, you will not be allowed to issue or redeem securities on the platform.”
Related: Bank of Singapore imposes 9-year ban on Three Arrows founders
User There was a major cryptocurrency laundering scandal in SingaporeIn cases where seized assets exceed 2 billion dollars.
A month after the massive money laundering bust in Singapore, Tether has restricted users in the city.
Recently crypto companies have moved to Singapore due to more favorable regulations. This could mean a serious blow
Under the pressure of HKG, the gates of Asia are closing in on the cryptocurrency cartel.
1 month after major money laundering bust in Singapore, Tether restricts customers in Singapore
Crypto firms have recently flocked to SG for friendlier registrations. This could be a huge blow
Asia’s doors are closing to the crypto cartel under HKG pressure https://t.co/yVu79bJHgb
— Rho Rider (@RhoRider) September 25, 2023
Another user speculated that changes to USDT payment terms could pose a particular problem for Cake DeFi, stating that the protocol has been marked as EDD (enhanced due diligence) and therefore It may be a matter of partnership between two companies.
This may be an issue specific to @cakedefi. EDD – marked as enhanced DD. I’m not suggesting there’s something wrong with the cake, I just think it could be specific issues with the relationship between the string and the cake.
this could be one @cakedefi particular problem. EDD – marked as enhanced DD. I’m not saying there’s anything wrong with Cake, I’m just saying it might be a specific bond/cake relationship issue.
— Hayden (@hayden_9776) September 25, 2023
Cointelegraph reached out to Tether for comment regarding the email shared by Cake’s CEO and the changes to its terms and conditions of use, but had not received any comments at the time of publication.
Translation by Walter Rizzo