Investment Learning

September 25, 2023

Tether Modifies Terms of Service, Halts USDT Redemption for Specific Singaporean Customer Groups

According to Cointelegraph: In a major development, Tether, a prominent stablecoin issuer, has updated its terms of service (ToS) for customers in Singapore, effectively barring particular customer groups from redeeming Tether (USDT) tokens. The information first came to light via Julian Hosp, co-founder and CEO of Decentralized Finance (DeFi) protocol Cake DeFi, through an email exchange received from Tether. Tether's email elucidated that Cake DeFi is controlled by another corporation based in Singapore, and in accordance with the modified ToS, these customer categories will not be allowed to redeem USDT. However, there still seems to be doubts about whether Cake DeFi can exchange USDT into U.S. dollars owing to its Singaporean base. Notably, the phrase "controlled by another entity" has sparked confusion among many crypto-enthusiasts. The new ToS effectively bans corporates, directors, and shareholders in Singapore, who are influenced by outside entities, from being Tether customers. The changes in Tether's ToS arrive amidst an immense cryptocurrency money-laundering scandal in Singapore where confiscated assets have escalated to over $2 billion. There is speculation that these changes might be specific to Cake DeFi, indicating a possibly heightened due diligence or partnership issues between the two companies.

Grayscale Investments Seeks SEC Approval for Ethereum Futures ETF

According to Decrypt: Grayscale Investments has filed an application with the U.S. Securities and Exchange Commission (SEC) to create a new crypto exchange-traded fund (ETF). This ETF, however, would deal in Ethereum futures, rather than Bitcoin spot like many other applications currently under review by the regulatory body. The documents Grayscale filed on Tuesday clarify that the proposed fund would not transact in Ether and would not necessitate an Ether custodian. The company's application comes in the wake of a positive ruling last month where a federal judge overturned the SEC's denial of Grayscale’s request to convert its Bitcoin trust into a spot ETF. As Grayscale waits for the approval of its Bitcoin ETF, it anticipates that the Ethereum futures ETF will receive approval from the SEC. The SEC initially approved a Bitcoin futures ETF in 2021, allowing investors to speculate on future digital asset prices. Investors show a strong appetite for spot crypto ETFs, and numerous such applications are currently under the SEC's evaluation, including one from the world's largest asset manager, BlackRock. A crypto ETF would offer traditional investors a more secure way to get involved with the asset. ETFs are financial instruments that allow people to buy shares mirroring the price of an underlying asset. Therefore, a Bitcoin ETF would let investors involve themselves in the asset without having to worry about the storage and protection of their cryptocurrency holdings.

Embattled Crypto Exchange JPEX Seeks Deregistration in Australia Amid Fraud Allegations

According to Cointelegraph: Hong Kong-based cryptocurrency exchange JPEX, currently facing legal issues, has applied for deregistration in Australia, according to a filing revealed by Cointelegraph on September 20. The filing states that Jieyi Chen, director of JP-EX Crypto Asset Platform PTY LTD (JPEX), initiated the deregistration process with the Australian Securities and Investment Commission. The filing indicates that all company members agree to the deregistration, adding that the firm is no longer in business, its assets are not exceeding $1,000 Australian dollars, and it does not carry any liabilities. This move comes shortly after Hong Kong police arrested six JPEX employees on fraud charges for operating an unlicensed crypto exchange during the Token2049 conference in Singapore on September 13. The SFC of Hong Kong reported receiving over 1,000 complaints about JPEX, with claims exceeding 1 billion Hong Kong dollars ($128 million) in loses. Amid the escalating controversy, JPEX allegedly raised its withdrawal fees to 999 USDT to prevent funds exiting the exchange. Ahead of its website going offline, JPEX proposed a compensation plan for its users, stating that they would be fully reimbursed with their assets exchanged for stakes in the JPEX DAO by September 21.