PANews March 21 news, according to a BaFin official announcement, the German financial regulatory authority BaFin has halted Ethena GmbH’s new business of issuing USDe stablecoin in Germany. The reason is that there are significant organizational deficiencies and Compliance violations in its MiCAR licensing process, including improper asset reserve management and failure to meet capital requirements.
BaFin has taken the following measures: freezing the asset reserves of Ethena GmbH, restricting the management’s disposal rights over the assets, closing related functions of its official website, and appointing a commissioner to oversee the execution. In addition, BaFin suspects that Ethena GmbH has illegally offered sUSDe security tokens to the public without providing the necessary prospectus.
Currently, Ethena GmbH customers are temporarily unable to redeem USDe tokens, but trading in the secondary market is not restricted. As of now, approximately 5.4 billion USDe tokens are in circulation. BaFin will continue to assess whether to fully reject its compliance license application under MiCAR.
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