Tether reportedly shuts USDT redemption for some Singapore customers

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Stablecoin issuer Tether has reportedly changed its terms of service (ToS) in Singapore. An email shared by the CEO of decentralized finance protocol Cake DeFi on Sept. 25 shows changes to the company’s ToS prohibiting certain customer bases from redeeming Tether (USDT).

Cake co-founder and CEO Julian Hosp shared the e-mail acquired from Tether, wherein the corporate acknowledged it can’t redeem USDT for United States {dollars} attributable to modifications in its ToS.

In a put up on X (previously Twitter), Hosp acknowledged that he’s not sure whether or not Cake might redeem USDT into U.S. {dollars} attributable to being primarily based in Singapore.

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The important thing modifications to the ToS of Tether embody proscribing its onboarding requirements and “corporates managed by one other entity, administrators, and shareholders residing in Singapore are now not permitted to be Tether prospects.“

The time period “managed by one other entity” confused many within the crypto group, together with Cake DeFi, which was knowledgeable that it’s “managed by one other company in Singapore. Accordingly, you’ll not be permitted to be issued or redeemed from the platform.“

Tether CTO Paolo Ardoino refuted hypothesis across the mail calling it a FUD. Ardoino claimed the coverage change in query has been relevant since 2020, nevertheless, Tether did not reply to queries on why Cake DeFi was notified earlier in Sept. 25 about the identical.

Associated: Singapore’s central bank slugs Three Arrows founders with 9-year ban

X customers highlighted Tether’s current change in ToS comes amid a serious crypto cash laundering scandal in Singapore the place belongings seized from the bust have swelled to over $2 billion.

One other person speculated that the modifications within the USDT redemption phrases might be a Cake DeFi-specific drawback, suggesting that the DeFi protocol is flagged as enhanced due diligence (EDD), and thus, it might be a partnership challenge between the 2 corporations.

Collect this article as an NFT to protect this second in historical past and present your assist for unbiased journalism within the crypto area.

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