Tether’s CTO Clarifies USDT Redemption Policy for Singapore Customers Amid Allegations
Cake DeFi CEO Julian Hosp’s email suggested Tether had altered its terms of service in Singapore, disallowing specific customer groups from redeeming USDT for USD.
Tether’s CTO Paolo Ardoino later clarified on X that Singapore had been a “Prohibited Jurisdiction” since at least May 2020, with no changes expected. This revelation brought clarity to the situation.
Recently, rumors emerged that stablecoin issuer Tether has made significant changes to its terms of service (ToS) in Singapore, disallowing specific customer groups from redeeming Tether USDT for United States dollars.
Cake DeFi CEO Julian Hosp shared an email, highlighting that Tether doesn’t permit customers in Singapore to redeem Tether USDT for United States dollars.
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
A notable restriction states, “Corporates controlled by another entity, directors, and shareholders residing in Singapore are no longer permitted to be Tether customers.” Cake DeFi, a decentralized finance protocol, found itself in a quandary, being informed that it falls under this category, rendering it ineligible for issuance or redemption through the platform.
The email indicated that “Tether had updated its terms of service to… impose stricter onboarding standards,” leading to the most confusion before Ardoino’s clarification.
However, Tether CTO Paolo Ardoino shared on X that Singapore has been Tether’s “Prohibited Jurisdiction” since at least May 2020, and there are no changes coming into place.
Since 2020, Tether’s “Prohibited Jurisdictions” encompass Cuba, North Korea, Iran, Pakistan, Singapore, Syria, Venezuela and Crimea.
Potential Regulatory Shifts for Stablecoins on the Horizon
Nevertheless, stablecoin regulation could change in the near future. Over the next few months, we may see how stablecoin providers adjust their strategies to comply with the evolving regulatory environment.
The upcoming European Union Markets in Crypto Assets (MiCA) regulation, taking effect in June 2024, is causing concerns about the possible delisting of stablecoins in Europe, as noted by a Binance executive due to the absence of project approvals under MiCA.
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