Tether’s Singapore ToS Update Sparks Cryptocurrency Debate

The stablecoin issuer, Tether, entered the fray, sending ripples of concern and confusion when Dr Julian Hosp, the CEO and Co-Founder of Cake DeFi, tweeted an email exchange revealing that Tether had allegedly changed its terms of service (ToS) in Singapore. Tether CTO Paolo Ardoino, on the other hand, stated that the policy change in question has been in effect since 2020.

Due to a recent change in Tether’s Terms of Service, Hosp expressed his concern about the uncertainty of redeeming USDT for USD in Singapore. He used the image below in his tweet:

The significant revisions to Tether’s Terms of Service (ToS) involve imposing stricter onboarding criteria, with a specific provision stating that “corporate entities controlled by external entities, as well as directors and shareholders residing in Singapore, are no longer eligible to become Tether clients.”

This stipulation, particularly the term “controlled by another entity,” created confusion within the cryptocurrency community. For instance, Cake DeFi received notice that it fell under the category of “controlled by another corporation in Singapore,” thereby rendering it ineligible for issuance or redemption on the platform.

Tether’s Chief Technology Officer, Paolo Ardoino, dismissed claims of this policy alteration as FUD (Fear, Uncertainty, Doubt). Ardoino asserted that this particular policy change has been in effect since 2020, with Singapore having been listed as a “Prohibited Jurisdiction”, along with countries like Cuba, North Korea, Iran, Pakistan, Syria, the Government of Venezuela, and Crimea.

Ardoino shared a web archive link showing that Tether’s terms of service were last updated on May 12, 2020. The attached image below provides further details:

X (previously Twitter) users pointed out that Tether’s recent change in its Terms of Service coincides with a significant cryptocurrency money laundering scandal in Singapore. In this incident, assets seized from the operation have reached a staggering value of over $2 billion. 

Additionally, it has been reported that Singapore’s Grab has formed a strategic partnership with Circle, a global leader in digital asset innovation. This partnership is expected to have a transformative impact on the digital landscape in Southeast Asia, especially for Singaporean users, as it paves the way for new Web3 customer experiences within the Grab app.