Tether is a popular stable coin USD. It recently made changes to its terms of service (ToS). The updated terms of services now prohibits certain customer groups in Singapore from accessing their services. This alteration has ignited controversy and speculation within the crypto community as Tether is ongoing regulatory pressure and scrutiny across different jurisdictions.
Cake DeFi’s CEO, Julian Hosp, announced a significant update on their DeFi platform. This platform enables users to earn interest on their cryptocurrency assets. According to an email shared by Hosp from Tether, recent changes in the ToS now prohibit redemptions of USDT for USD.
The updated policy restricts corporations in Singapore from being Tether customers. Additionally, Cake DeFi, owned by another corporation based in Singapore, faces limitations on account verification.
Rumors circulated among users about the possible link between the revised ToS and a crypto laundering scandal that unfolded in Singapore. This scandal involved an astounding seizure of $2 billion from the operation. A Chinese national, Su Bin, was involved in the operation. He managed to launder over $1.4 billion in cryptocurrency through various shell companies and bank accounts.
A Closer Look At Tether Challenges And Legal Engagements
Tether, at present, is encountering many challenges and legal proceedings. Tether and the New York Attorney General’s office reached an agreement in February 2021. This resolution arose from accusations related to the concealment of asset losses through misreporting.
In response to these allegations, Tether has been held accountable for a fine of $18 million. It also required to file quarterly reports encompassing their available resources.
The recent modifications made to Tether’s Terms of Service (ToS) have generated a multitude of inquiries and apprehension from both its user base and regulators. Many users express their discontent and lack of confidence in Tether’s actions. It prompts them to consider exploring alternative options like USDC or DAI.
Regulatory bodies have expressed their perspectives on stable coins and the associated risks. The Monetary Authority of Singapore (MAS) has clarified that it does not regulate stable coins backed by fiat currencies. However, they may impose regulations concerning anti-money laundering and counter-terrorism financing requirements for such coins.
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