What Does Singapore’s New Tether Regulation Mean for Crypto?

News Desk5
3 Min Read

Tether, a major player in stablecoins, has resumed lending USDT despite earlier promises to stop. This has raised worries in the crypto community about the risks tied to Tether’s strong influence in the stablecoin market. Is Singapore becoming the next US in suppressing crypto freedom? Let’s discuss the Tether FUD in Singapore. 

Tether has made a surprising move to safeguard its network and users by modifying its terms of service (ToS) in Singapore. This alteration restricts specific customer bases from redeeming their Tether holdings for US dollars, sending ripples of concern and confusion to the cryptocurrency community. 

Only Specific Users Can Redeem Tether Tokens

Dr. Julian Hosp, CEO of Cake Group, is the first to reveal Tether’s terms of service (ToS) on the X platform. He personally encountered the impact when trying to convert USDT to USD, facing unexpected restrictions outlined in an email from Tether. These altered ToS introduce tighter onboarding rules, particularly affecting specific customer groups. Corporations controlled by external entities, directors, and shareholders residing in Singapore are prohibited from being Tether customers. 

How’s Crypto Reacting?

The dictatory phase “controlled by another entity” has raised debates due to its ambiguous meaning. However, it has led to many questions and discussions within the crypto community. Some speculate if these changes are connected to a recent money laundering case in Singapore, while others seek clarity on customer eligibility criteria. This level of adjustment in Tether’s ToS is creating a complex scenario, with particular focus on how it impacts customers in Singapore and its broader implications for the cryptocurrency landscape. 

Some people have even decided to use different stablecoins instead because they’re unsure if they can trust Tether. This all heightened after the high-profile money laundering cases in Singapore. 10 Chinese individuals’ passports have been revoked, and many are under the radar, like banks, real estate agents, precious metal dealers, and even golf clubs, in connection with the case. 

Tether’s Response to the Changing Terms

In response to these claims, Tether’s CTO, Paolo Ardoino, clarified that Singapore has been listed as a “Prohibited Jurisdiction” since 2020, along with countries like Cuba, North Korea, Iran, Pakistan, Syria, the Government of Venezuela, and Crimea. 

As of writing, Tether is trading at $1.00, showing no change over the past 24 hours. However, its trading volume is up by 62%, reaching $17.36 billion. This incident has highlighted the intricacies and potential challenges surrounding stablecoin regulations in different jurisdictions. 

Does Singapore’s too much crypto involvement scare the new companies looking for their base outside the US?

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