Tether, the stablecoin issuer, has raised eyebrows with its revised terms of service (ToS) in Singapore. These changes have resulted in the prohibition of specific customer groups from redeeming Tether. This development follows concerns raised by Tether regarding the corporate structure of Cake DeFi, a decentralized finance protocol based in Singapore.
Unveiling the Email Notification
Cake DeFi’s CEO, Julian Hosp, recently shared an email received from Tether that unveiled the alterations to their ToS. The email conveyed that USDT could no longer be redeemed for United States dollars due to these new terms.
Understanding the Crucial ToS Changes:
1. Stricter Onboarding Standards: Tether has raised its onboarding standards, which is the first noteworthy change. The company is now implementing more rigorous criteria for individuals and entities seeking to use their services.
2. Corporates Controlled by Another Entity: One of the most significant alterations involves the restriction on “corporates controlled by another entity” in Singapore. This particular clause has further raised questions and confusion within the cryptocurrency community.
Furthermore, the term “controlled by another entity” has perplexed many, including Cake DeFi. The protocol was informed that it falls under this category, resulting in its inability to issue or redeem USDT via the platform.
Connection to Singapore’s Crypto Money Laundering Scandal
Notably, Tether’s alteration of its ToS coincides with a significant crypto money laundering scandal in Singapore. Assets seized from the bust have surged to over $2 billion, raising questions about potential regulatory changes and their impact on crypto businesses.
Speculations About Cake DeFi’s Unique Situation
Also, some users speculate that the changes in USDT redemption terms might be specific to Cake DeFi. They further suggest that the DeFi protocol could be flagged for enhanced due diligence (EDD), possibly hinting at a partnership issue between the two firms.