🤐Tether Halts USDT to Fiat Transfers for Singapore-Based DeFi Project

Singapore-based DeFi protocol Cake has reported that Tether has discontinued the conversion of USDT stablecoin into US dollars due to "changes in its policies." This information was shared by the co-founder and CEO of the platform, Julian Hosp.

Hosp shared a screenshot of the message from Tether, which stated that the new terms of service would involve discontinuing services for "corporations controlled by another organization, directors, and shareholders registered in Singapore."

Users have speculated that Tether's actions are a response to a recent scandal in the jurisdiction. Local authorities conducted an investigation and discovered money laundering involving digital assets exceeding $2 billion.

Some users remain more optimistic and suggest that Cake's issues may be specific to them and not necessarily indicative of problems for other cryptocurrency startups associated with the city-state.

To recap, in September, Singapore authorities froze $1.8 billion linked to cryptocurrency money laundering. The local parliament raised more than 30 questions on the topic, ranging from the strictness of verification processes to reports of suspicious transactions and their impact on the country's reputation.