In a move that has crypto enthusiasts scratching their heads, the German Federal Financial Supervisory Authority, BaFin, has told Ethena GmbH to hit the brakes on their stablecoin USDe.
It turns out that Ethena GmbH’s USDe approval process was about as watertight as a colander.
According to BaFin’s March 21, 2025, announcement, Ethena’s synthetic dollar, USDe, has been playing fast and loose with the European Union’s Markets in Crypto Asset Registration rules.
In the EU’s alphabet soup of regulations, MiCAR compliance is the new buzzword that stablecoin issuers can’t afford to ignore.
“Ethena GmbH seems to have been dishing out sUSDe tokens like candy, without so much as a prospectus,” tutted the regulator.
BaFin has effectively told Ethena to put a lid on it and stop selling to the public.
Time for a Crypto Timeout
The fun police at BaFin have frozen USDe reserves and ordered Ethena to pull the plug on its website and customer sign-ups.
While Ethena GmbH can’t sell USDe, they’re still allowed to watch from the sidelines as secondary sales carry on. Ethena Labs had a thing or two to say about it.
“We’ve been informed that our MiCAR application is a no-go. We’re miffed, but we’re keeping our eyes peeled for other options,” they lamented.
The crypto platform assures us that BaFin’s order hasn’t thrown a wrench in the stablecoin’s listing.
And breathe easy, because the decision won’t rain on Ethena Limited’s parade in the British Virgin Islands. They’re still minting and redeeming USDe like it’s going out of style.
“USDe is still golden, and our assets are as unfrozen as a penguin in the Arctic,” Ethena quipped.
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2025-03-21 20:48