Tether Updates Terms of Service in Singapore Amid Crypto Scandal

Stablecoin issuer Tether has made significant modifications to its terms of service (ToS) in Singapore, restricting specific customer groups from redeeming its USDT stablecoin for U.S. dollars. These changes were disclosed by Julian Hosp, CEO of Cake DeFi, a decentralized finance protocol based in Singapore.

The revised ToS now specifies that “corporates controlled by another entity, directors, and shareholders residing in Singapore are no longer permitted to be Tether customers.” This shift has raised concerns for Cake DeFi and other entities in Singapore regarding their ability to exchange USDT for U.S. dollars.

In an email from Tether received on Monday, Hosp expressed worry about his company’s ability to ensure USDT redemptions due to this regulatory change. The email indicated that the updated ToS was the basis for Tether’s new policy.

The crypto community is puzzled by the term “controlled by another entity,” leading to speculation that these adjustments may relate specifically to Cake DeFi and could indicate potential partnership complications between the two organizations.

Paolo Ardoino, CTO of Tether, stated that the policy change has been in place since 2020. However, he did not clarify why Cake DeFi was notified of this information just recently.

These developments come amid a significant cryptocurrency money laundering scandal in Singapore, where assets valued at $1.7 billion were seized. The motivations behind Tether’s policy change and its timing are still uncertain.

A spokesperson for Tether emphasized the company’s commitment to adhering to global regulations, including those mandated by Singapore authorities. They assured that the onboarding process remains thorough and a fundamental aspect of their operations.