Singapore-based DeFi protocol Cake announced that Tether is no longer converting its stablecoin into US dollars due to “changes in its rules.” This was announced by co-founder and CEO of the platform Julian Hosp.
Ok, so, I won’t be able to tell you if redeeming $USDT into $USD is actually possible, due to being in #Singaporewhich 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
The top manager provided a screenshot of a message from Tether. It said the new terms of service would include the removal of services to “corporations controlled by another entity with directors and shareholders incorporated in Singapore”.
Users noted that Tether’s actions were dictated by a recent scandal in the jurisdiction. Local police investigated and discovered more than $2 billion in digital asset laundering.
🚨🚨 🚨 1 month after the massive money laundering bust in Singapore, Tether restricts customers in Singapore
Crypto firms have flocked to SG recently for friendlier regs. This could be a huge blow
W/ the HKG crackdown, the gates to Asia are closing for the crypto cartel https://t.co/yVu79bJHgb
— Rho Rider (@RhoRider) September 25, 2023
There were also more optimistic users who suggested that Cake’s problems were specific and did not affect other crypto startups associated with the city-state.
This could be a @cakedefi issue specifically. It’s flagged as EDD – enhanced DD. I’m not suggesting anything is wrong at Cake, just that it could be specific tether / cake relationship issues.
— Hayden (@hayden_9776) September 25, 2023
Let us recall that in September, the Singapore authorities froze $1.8 billion associated with cryptocurrency laundering. Local parliament raised more than 30 questions on the topic, from the rigor of verification processes to reporting of suspicious transactions and the impact on the country’s reputation.
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