In a surprising move, Tether, a major stablecoin issuer, has reportedly modified its terms of service (ToS) in Singapore, preventing certain customer bases from redeeming their Tether holdings for US dollars. The recent development of Tether has left many investors in the cryptocurrency community puzzled and concerned about the implications. So, let’s take a quick look at the report.
Recent ToS of Tether Raise Eyebrows
Stablecoin issuer Tether, known for its digital assets pegged to real-world currencies, has recently made significant changes to its terms of service (ToS), the CEO of Cake Group, Dr. Julian Hosp said on the X platform. The claims have raised several discussions and uncertainty in the crypto space.
Julian Hosp said that he found himself in the midst of this ToS alteration when he attempted to redeem USDT for USD but encountered an unexpected roadblock. Hosp shared an email he received from Tether, outlining the new terms that restrict specific customer categories from redeeming Tether tokens.
Notably, the reported key changes in Tether’s ToS primarily revolve around stricter onboarding standards, specifically targeting certain customer groups. Meanwhile, under the revised terms, Tether now prohibits corporations controlled by external entities, directors, and shareholders residing in Singapore from being Tether customers, the report showed.
One element that has puzzled many in the crypto community is the phrase “controlled by another entity.” This term appears to be the basis for restricting customers, and its exact meaning remains a subject of debate.
However, Hosp’s encounter with these revised terms left him uncertain about Cake Group’s ability to redeem USDT into USD, given that the company is based in Singapore. He expressed his confusion and shared the email he claimed to received from Tether, shedding light on the sudden changes.
The altered ToS has prompted numerous questions and speculations within the cryptocurrency community. While some have wondered whether these changes are connected to a recent money laundering case in Singapore, others are seeking clarification on the specific criteria for customer eligibility.
The claims of Tether’s modified terms of service have introduced a degree of uncertainty and complexity into the crypto industry. The restriction on certain customer categories, particularly those based in Singapore, has raised questions about the stablecoin issuer’s motivations and the broader implications for the cryptocurrency landscape.
However, responding to the claims, Tether CTO Paolo Ardoino clarified that since 2020, Singapore has been listed as a “Prohibited Jurisdiction”, along with Cuba, North Korea, Iran, Pakistan, Syria, the Government of Venezuela, and Crimea.
Meanwhile, during writing, the Tether price traded at $1.00, flat over the past 24 hours. Its volume rose 62% to $17.36 billion at the same time.
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