Recent adjustments to Tether’s Terms of Service (ToS) have raised eyebrows across the global crypto community, particularly in Singapore. These amendments, primarily to the redemption of Tether’s stablecoin, USDT, have broader implications for the crypto ecosystem in the region. It will hinder the ability to convert USDT to USD for Bake.io users, among others.
Tether’s Policy Shift: The Core Changes
The essence of Tether’s revised ToS centers on its onboarding criteria. Specifically, Tether has imposed constraints that prevent “corporates controlled by another entity, directors, and shareholders” based in Singapore from becoming or continuing as its customers. Furthermore, Tether emphasized that any platform “controlled by another corporation in Singapore” would face restrictions, which in effect bans them from issuance or redemption on the platform.
Julian Hosp, CEO and co-founder of decentralized finance protocol Bake.io (formerly Cake DeFi), recently illuminated this development through a correspondence. The email, sent to Hosp by Tether, underscored that USDT could no longer be redeemed for U.S. dollars due to the updated ToS.
Interestingly, Hosp is uncertain about Bake.io’s ability to convert USDT into U.S. dollars, especially given their Singaporean base. Some in the industry opine this could be an issue unique to Bake.io. They hint at possible enhanced due diligence (EDD) flags or even a deeper partnership contention between Bake.io and Tether.
Community Speculations and Broader Implications for Bake.io
This ToS revision has undeniably resonated in various crypto quarters. Several crypto users drew attention to the timing of Tether’s change. They noted its coincidence with a massive cryptocurrency money laundering scandal in Singapore, with assets seized now surpassing $2 billion.
Moreover, the phrase “controlled by another entity” stirred confusion among many, including Bake.io. The ambiguity of such terms, combined with the broader shifts in Tether’s policies, opens up many questions regarding the future trajectory of the crypto landscape in Singapore.
While the exact motive behind Tether’s ToS adjustments remains somewhat elusive, it’s evident that their ripple effects are far-reaching. Things look rather bleak with a cloud of uncertainty hovering over entities like Bake.io.
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