Recent actions by the largest stablecoin issuer, Tether, show a notably restrictive shift in its terms of service (ToS) for specific Singapore-based clientele. The decentralized finance protocol Cake’s CEO shared that their corporate body found themselves unexpectedly unable to redeem their USDT holdings for USD. This unexpected change in business operations stemmed mainly from amendments in Tether’s ToS, which as per Cake Groupissuance, took place without significant forewarning.
A particular clause in Tether’s updated ToS restricts applicants from Singapore, particularly “corporates controlled by another entity, directors, and shareholders”, from accessing their services. This move, while unexpected, echoes similar regulations, raising concerns across the crypto-user base regarding the accessibility and freedom often associated with cryptocurrency transactions.
Another perspective, however, paints this move as a strategic decision by Tether to authentically uphold its adherence to regulatory compliance. In the wake of a major $2 billion crypto money-laundering scandal in Singapore, tighter policies by Tether could be seen as an attempt to maintain integrity and user trust in a volatile marketplace.
Furthermore, it is worth noting that some speculate this shift could be specifically aimed at the Cake DeFi protocol on account of some undisclosed partnership issues. Tether’s updated ToS could be a part of a wider strategy rebutting potential restriction or legal issues that may jeopardize their functionality or potentially even affect the whales in the crypto markets.
Yet, ambiguity on the back-end leaves room for speculation about what these changes could imply for current and potential users of Tether. Will this decision by Tether set a precedent that affects the broader framework for stablecoins or indicate their acceptance to localized regulations in the larger crypto marketplace? Time will be the determinant as we navigate this ever-evolving domain.
Source: Cointelegraph
