Tether’s New Terms Affect Cake DeFi
Cake DeFi CEO, Julian Hosp, has shared an email from Tether that reveals changes to the terms of their stablecoin, USDT. The most significant change is that Tether will no longer allow the conversion of USDT into U.S. dollars. The updated terms also restrict specific customer categories, including companies influenced by another corporation and stakeholders in Singapore.
Reactions and Speculations
The cryptocurrency community has raised concerns about the term “influenced by another corporation” and its implications. Some speculate that this change is related to Singapore’s recent money laundering case, while others believe it specifically targets Cake DeFi. There are suggestions of potential strains in the relationship between Cake DeFi and Tether.
Tether’s Response
Tether responded by emphasizing their commitment to regulatory compliance. They stated that their onboarding process complies with global regulations, including those set by Singapore regulators. Tether’s CTO, Paolo Ardoino, mentioned on Twitter that Singapore had been a prohibited jurisdiction since May 2020, but did not address why Cake DeFi received the notification only recently.
Implications for Crypto Landscape
Tether’s decision could have immediate consequences for businesses like Cake DeFi and may have broader implications for the cryptocurrency ecosystem in Singapore and beyond. This situation highlights the importance of adaptability and responsiveness in the cryptocurrency space amidst a fluctuating regulatory environment.
Hot Take: Tether’s Updated Terms Raise Concerns for Cake DeFi
Tether’s recent changes to its terms regarding USDT redemption have raised concerns within the cryptocurrency community. The restriction on companies influenced by another corporation and stakeholders in Singapore has led to speculations about its impact on Cake DeFi. Tether’s response emphasizes their commitment to compliance, but questions remain about the timing of the notification to Cake DeFi. This situation highlights the need for adaptability and responsiveness in the cryptocurrency industry, especially considering the evolving regulatory landscape.
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