Tether, a stablecoin issuer, has updated its terms of service (ToS) for customers in Singapore.
According to an email from Tether that was shared by Cake DeFi’s CEO Julian Hosp on Sept. 25, the new ToS prevent some users from exchanging Tether for U.S. dollars.
Hosp, who is the co-founder and CEO of the decentralized finance protocol Cake DeFi, posted the email on X (formerly Twitter) and expressed his uncertainty about whether his platform could still redeem USDT for U.S. dollars, since it is based in Singapore.
The main changes in Tether’s ToS include tightening its customer eligibility criteria and banning “corporates that are controlled by another entity, directors, and shareholders who live in Singapore from being Tether customers.”
The phrase “controlled by another entity” caused confusion among many in the crypto community, including Cake DeFi, which was told that it was “controlled by another corporation in Singapore.Therefore, you are not allowed to issue or redeem from the platform.”