Ethena’s USDe Stablecoin Sales Blocked by German Regulator Over ‘Serious Deficiencies’

Usde van Ethena Labs, the fourth largest stablecoin per market capitalization, can no longer be offered for sale by the German subsidiary of the Ethena GmbH company after Bafin-De Financial Supervision of the Land-identified ‘Serious shortcomings’ in the license approval process.

In addition to no longer offering the Ethereum-based Usde, Bafin placed several supervisory measures on Ethena GmbH to protect customers, including blocking the activa reserves, blocking the website and naming a special representative to check the measures.

The supervisor said that Ethena was able to offer his stablecoin by launching the net under the thread before the markets in Crypto -Activa Regulation, or Mica, came into force in the European Union.

“Ethena GmbH benefited from a transitional arrangement under the European [MiCA] regulations to enter the German market, “the Bafin Release StatesWith reference to that Ethena GmbH was able to publish the asset-referred tokens alone, because it applied to do this one day before a deadline of 30 July 2024.

By applying for authorization on July 29, Ethena GmbH was essentially grandfather and was allowed to spend the tokens until they received or refuse the authorization. Ethena Labs said on Friday that it pursues other options for MICA certification.

“Since its foundation, Ethena has investigated various options and jurisdictions when it comes to legal frameworks worldwide that would be conducive to our company,” ” Posted Ethena Labs on X (formerly Twitter). “And as a result, we have several entities in our structure that facilitate mining and redemption. [MiCA] Authorization via Ethena GmbH was one of the different options that we pursued. “

Although Holders van Usde can no longer exchange them via Ethena GmbH, the measures placed on the subsidiary of Ethena Labs do not have an influence on usde -trade on secondary markets.

“For the sake of clarity, the decision will in no way the current entries of Usde, or mining and repayment via Ethena (BVI) Limited (which the vast majority of our coin users), and used, and used, is not supported in any way,” and Usde remains fully supported posted.

Although Bafin’s measures are not yet final, it also indicated that the suspicion that Ethena GmbH ‘offers public effects in Germany […] Without the required prospectus of effects. ”

Earlier this week, Ethena Labs and Securitize announced a new Ethereum virtual machine-compatible blockchain that will use stablecoins for gas costs.

Native token of the company, Ena, has fallen by more than 6% to $ 0.358 in the last 24 hours, more than 76% discount on its high price.

Published by Andrew Hayward