German Regulator BaFin Identifies 'Deficiencies' in Ethena's USDe Stablecoin

German Regulator BaFin Identifies 'Deficiencies' in Ethena's USDe Stablecoin

The German financial supervisory authority BaFin said it identified "serious deficiencies" in Ethena's synthetic USDe stablecoin.Ethena is the yield-generating protocol. The stablecoin has a market cap of $5.4 billion. Ethena said on X that it will "continue to evaluate alternative frameworks," after being notified that the "application under the MiCAR regulatory framework will not be approved."In a statement, BaFin said that the deficiencies ar…

Germany BaFin Cracks Down on Ethena’s USDe Token Amid Regulatory Issues

BaFin found serious deficiencies in Ethena GmbH’s MiCA compliance, halting the public sale of its USDe token within Germany. The regulator ordered custodians to freeze USDe’s reserve assets, raising concerns over asset-referenced token issuers in the European Union. Despite regulatory challenges, Ethena continues to attract institutional investments, including a $100 million funding round for its iUSDe token. Germany financial watchdog, BaFin, h…

BaFin Bans USDe Offering by Ethena GmbH in Germany - Crypto News Flash

BaFin banned Ethena GmbH from offering USDe due to major approval procedure shortcomings. Ethena Labs assures USDe remains redeemable globally through its BVI-based entity. The decisive move comes from the German financial regulator, BaFin, which has just imposed a ban on Ethena GmbH, a subsidiary of Germany-based Ethena Labs. The main reason? “Serious deficiencies in the approval procedures.” This action means that Ethena GmbH is no longer allo…

German financial regulator BaFin has halted the sale of Ethena Labs' USDe stablecoin, citing "serious deficiencies" and non-compliance with MiCA requirements. "BaFin has banned Ethena GmbH from further public offering of the USDe token and instructed the company to freeze the corresponding reserve of custom assets...

German Regulators Block Ethena’s USDe Over Compliance Issues

German regulators BaFin blocked Ethena Labs subsidiary Ethena GmbH from selling USDe. This ban is due to violations of the EU’s MiCA regulations and unregistered securities.  The secondary market trading through other entities like Ethena (BVI) remains unaffected.  In an unexpected move, German regulators blocked the sale of Ethena Labs USDe, citing regulatory violations and concerns over unregistered securities. USDe, the fourth-largest stablec…

German Regulator BaFin Bans Sales of Ethena's USDe - CoinCodeCap

Key Takeaways As part of the measures, BaFin has frozen the company’s asset reserves, restricted executive access, and barred new client onboarding.  However, the regulator has clarified that secondary market trading of USDe will not be affected Germany’s financial regulator, BaFin, has imposed strict measures on Ethena GmbH, preventing the company from offering its USDe token to the public.  The enforcement action follows a probe that revealed…