Singapore Shake-Up: Tether Alters Terms, Sparks Crypto Community Confusion

Sep. 26, 2023
Singapore Shake-Up: Tether Alters Terms, Sparks Crypto Community Confusion

Stablecoin issuer Tether has recently changed its terms of service (ToS) in Singapore, causing a stir within the cryptocurrency community. The alterations, which have been met with confusion and speculation, primarily revolve around restricting the redemption of the company’s USDT tokens for United States dollars.

Email Reveals Tether’s New Restrictions

The news came to light when Julian Hosp, the CEO of decentralized finance protocol Cake DeFi, shared an email he had received from Tether on September 25th. According to the email, Tether will no longer allow certain customer bases to redeem USDT for USD due to amendments in its ToS.

Julian Hosp expressed his surprise on Twitter, stating:

Ok, so, I won’t be able to tell you if redeeming $USDT into $USD is actually possible, due to being in Singapore, which was a recent change to the Tether ToS from one day to another. Interesting.”

They made some important changes to their Terms of Service. They now have stricter rules for new users. Also, they don’t allow businesses owned by other companies or people who live in Singapore to use Tether. This has confused some people in the cryptocurrency community.

For instance, Cake DeFi was caught up in the confusion when it was informed that another corporation in Singapore controlled it.” As a result, Cake DeFi has been informed that it will not be permitted to issue or redeem Tether on the platform.

The timing of these changes is noteworthy, as they coincide with a major crypto money laundering scandal in Singapore. Authorities have seized assets worth over $2 billion as a result of this scandal. Whether Tether’s revised ToS directly relates to this development is unclear, but some Twitter users have speculated on potential connections.

In response to the confusion surrounding their recent changes in Singapore. Tether has clarified that Singapore has been classified as a Prohibited Jurisdiction since 2020. This classification also includes other regions such as Cuba, North Korea, Iran, Pakistan, Syria, the Government of Venezuela, and Crimea.

Tether’s Chief Technology Officer, Paolo Ardoino, responded to the situation. In his statement, he pointed out the importance of verifying information before sharing it and suggested that individuals consult the web archive first.

Ardoino mentioned that the information in question dates back to January 2022. Users could confirm that it last updated on May 12, 2020, by following the provided link, he noted. He emphasized careful information verification before making hasty social media posts.

Ammar Raza

Associate editor
Skilled in crafting compelling content, with a deep enthusiasm for blockchain technology. I offer precise and easily comprehensible perspectives on cryptocurrencies, decentralized finance, and the ever-evolving landscape. Count on me as a reliable resource to remain informed about the latest advancements in the world of crypto.