Cake, a DeFi protocol based in Singapore, has announced that Tether will no longer be converting its stablecoin into US dollars.
This decision was made due to new rules implemented by Tether, as revealed by co-founder and CEO Julian Hosp.
A screenshot of a message from Tether was provided by Hosp, stating that services to corporations controlled by an entity with directors and shareholders incorporated in Singapore would be removed from their terms of service.
Many users speculated that Tether’s actions were in response to a recent scandal involving money laundering in the jurisdiction.
However, there were also some optimistic users who believed that Cake’s issues were isolated and would not affect other cryptocurrency startups in Singapore.
It should also be noted that in September, the Singapore government froze $1.8 billion linked to cryptocurrency laundering, leading to concerns and questions raised by the local parliament about the country’s reputation and impact on the crypto industry.