Understanding the New Tether Terms
Tether, the dominant force behind the USDT stablecoin, has recently made headlines by altering its terms of service for its customer base in Singapore. The CEO of Cake Group, Dr. Julian Hosp, unveiled this change through a post on the X platform, sharing the direct communication from Tether about the alterations.
What Do the Changes Entail?
Based on the shared email, the updated ToS primarily revolve around Tether’s customer criteria. The new terms state:
- Enhanced restrictions on its onboarding standards.
- Entities “controlled by another entity, directors, and shareholders residing in Singapore” will no longer qualify as Tether customers.
These changes puzzled many, particularly Cake DeFi, which was told it was controlled by a different corporation in Singapore, thereby making it ineligible for USDT redemption on Tether’s platform.
Speculations and Theories from the Crypto Community
The crypto community has been buzzing with theories regarding Tether’s abrupt decision:
- Singapore’s Money Laundering Scandal: Some believe that Tether’s updated ToS might be a response to the latest cryptocurrency money laundering scandal in Singapore. The assets connected to this controversy have reportedly surged past the $2 billion mark.
- Cake DeFi’s Standing: While some feel the change could be more generic, others theorize that this might be specific to Cake DeFi. Some users highlighted that Cake DeFi might be flagged for enhanced due diligence (EDD), suggesting potential partnership troubles between Tether and Cake DeFi.
While Tether’s reasons for altering its ToS in Singapore remain partly speculative, the decision has certainly stirred discussions in the crypto world. Whether it’s a preventive measure following the money laundering incident or specific issues with Cake DeFi remains to be confirmed.