Tether revises its Singapore policy – here’s how it impacts USDT holders

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  • barred certain customer bases from redeeming USDT for United States dollars.
  • The updated terms explicitly stated that “corporates controlled by another entity residing in Singapore are no longer permitted to be Tether customers.”

Tether [USDT] has made significant changes to its terms of service (ToS) in Singapore. Julian Hosp, the CEO of Cake DeFi, a decentralized finance (DeFi) protocol, unveiled the alterations when he shared an email he received from Tether on 25 September.

This email showed that Tether prohibited specific customer bases from redeeming USDT for United States dollars.

In the message from Tether, the company cited changes in its ToS as the reason behind this sudden policy shift. The email created uncertainty for Cake DeFi, since it was a Singapore-based entity, as to whether they could still convert USDT into U.S. dollars.

Change in onboarding standards cited as reason for shift
The critical alterations in Tether’s ToS revolved around tightened onboarding standards. Notably, the updated terms explicitly stated that “corporates controlled by another entity, directors, and shareholders residing in Singapore are no longer permitted to be Tether customers.”

This newfound clause meant that Cake DeFi fell under the category of “controlled by another corporation in Singapore.”

Therefore, they would no longer be able to issue or redeem USDT through the platform. The situation also raised eyebrows in the crypto community, particularly due to the ambiguity surrounding the term “controlled by another entity.”

However, Tether’s Chief Technology Officer, Paolo Ardoino, stepped in to clarify the situation. He categorically dismissed the speculation surrounding the email as FUD (Fear, Uncertainty, Doubt).

Ardoino asserted that the policy change in question had, in fact, been in effect since 2020. Nevertheless, Tether refrained from providing a clear response as to why Cake DeFi received this notification earlier on 25 September.



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