Tether announced that it has altered the terms of service for its stablecoin, USDT, concerning customers residing in Singapore. In an email, Tether disclosed that it had blocked the use of USDT by Cake DeFi, which is controlled by a Singapore-based company. However, Tether’s CTO, Paolo Ardoino, stated that this policy has been in effect since 2020.
Julian Hosp, the CEO of Cake DeFi, shared a screenshot of the email indicating that Tether had restricted the usage of USDT for customers living in Singapore.
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_to ToS from one day to another. Interesting. pic.twitter.com/1YzNqkbjMO— Dr. Julian Hosp (@julianhosp) September 25, 2023
The email highlighted uncertainties regarding changes in Tether’s terms of service and whether Cake DeFi, as a Singapore-based company, could convert USDT to US dollars.
Paolo Ardoino, Tether’s CTO, stated in his comments on the matter that this policy change has been in effect since 2020. However, there was no clear explanation as to why Cake DeFi was informed of this change in 2023.
Some significant changes in Tether’s service terms in Singapore include:
- Restricting hiring standards.
- Not allowing companies controlled by other organizations, directors residing in Singapore, and shareholders who are also Singapore residents to be Tether customers.
They believe that these changes could particularly impact cryptocurrency companies like Cake DeFi. Despite Paolo Ardoino’s assertion that this policy has been in place since 2020, it remains unclear why companies like Cake DeFi were informed of this change so much later.