Tether has reportedly blocked USDT redemptions for some Singaporean customers
Stablecoin issuer Tether has reportedly changed its Terms of Service (ToS) in Singapore. An email shared by the CEO of decentralized financial protocol Cake DeFi on September 25 reveals changes to the company's ToS that prohibit certain client bases from accepting Tether (USDT).
Keck founder and CEO Julian Hosp shared an email he received from Tether, in which the company said it would no longer be able to redeem USDT for US dollars due to the ToS change.
Ok, so, I can't tell you if it's possible to convert $USDT back to $USD due to being in #Singapore , which was a recent change from one day to another with @Tether_to ToS. Interesting. pic.twitter.com/1YzNqkbjMO
— Dr. Julian Hosp (@julianhosp) September 25, 2023
In a post on X (formerly Twitter), Hosp stated that they are not sure if they can convert USDT to US Dollars due to Keck being in Singapore. In a statement to Cointelegraph, a Tether spokesperson said:
“Teter has an onboarding process that fully complies with international regulations, including the guidelines set by Singapore regulators.
Moreover, Tether told Cointelegraph that the terms and conditions (TOC) relating to Singapore entities have remained unchanged since May 2020.
The key changes to the ToS of Tether include limiting the onboarding requirements and “corporations, directors and shareholders that are controlled by another entity will not be allowed to be customers of Tether resident in Singapore”.
The term “controlled by another entity” confused many in the crypto community, including Keck Defy, who was said to be “controlled by another corporation in Singapore”. Accordingly, you are not allowed to give or redeem from the platform.”
Tether CTO Paolo Arduino dismissed the speculation surrounding the letter as FUD. Arduino said the policy change in question is effective from 2020, however, Tether did not respond to the same questions about why Cake DeFi was earlier on September 25th.
It would be nice to see webarchive before spreading FUD… this is January 2022…. And if you open the link below: Last updated: May 12, 2020…take a moment again. YOLO to search and verify information before posting. pic.twitter.com/NPnitUBbpY
— Paolo Ardoino (@paoloardoino) September 25, 2023
RELATED: Singapore central bank slams Three Arrows founders with 9-year ban
X users highlighted Tether's recent move to ToS amid a serious crypto-money laundering scandal in Singapore that swelled its assets to more than $2 billion.
Tether Limits Clients in Singapore 1 Month After Massive Fraud in Singapore
Crypto companies have recently flocked to SG for friendly exchanges. This can be a big loss
HKG eclipse, doors to Asia close for crypto cartel https://t.co/yVu79bJHgb
— Rho Rider (@RhoRider) September 25, 2023
Another user speculated that changes to the USDT redemption terms could be a particular problem for Keck DeFi, suggesting that the DeFi protocol is called Enhanced Due Diligence (EDD), and that this could be a matter of partnership between the two companies.
This may be particularly the case with @cakedefi. Noted as EDD – Enhanced DD. I'm not suggesting there's anything wrong with the cake, just that it could be some teaser/cake connection issues.
— Hayden (@hayden_9776) September 25, 2023
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