Is Tether Revising Its Policy In Singapore? Know Here

Coingapestaff
September 25, 2023
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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.

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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.

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What’s Next?

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.

Also Read: Bitcoin Loyalists Express Faith In BTC Price Upside, On Chain Data Shows

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
CoinGape comprises an experienced team of native content writers and editors working round the clock to cover news globally and present news as a fact rather than an opinion. CoinGape writers and reporters contributed to this article.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.