{"id":22316,"date":"2025-03-22T12:49:32","date_gmt":"2025-03-22T10:49:32","guid":{"rendered":"https:\/\/forklog.com\/en\/german-authorities-halt-sale-of-usde-stablecoin\/"},"modified":"2025-03-22T12:49:32","modified_gmt":"2025-03-22T10:49:32","slug":"german-authorities-halt-sale-of-usde-stablecoin","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/german-authorities-halt-sale-of-usde-stablecoin\/","title":{"rendered":"German Authorities Halt Sale of USDe Stablecoin"},"content":{"rendered":"<p>The German financial regulator <span data-descr=\"Federal Financial Supervisory Authority of Germany\" class=\"old_tooltip\">BaFin<\/span> <a href=\"https:\/\/www.bafin.de\/SharedDocs\/Veroeffentlichungen\/DE\/Verbrauchermitteilung\/weitere\/2025\/meldung_2025_03_21_Ethena_GmbH.html\">has halted<\/a> the sale of the <a href=\"https:\/\/forklog.com\/en\/news\/delta%e2%80%91neutral-synthetic-dollars-why-the-usde-stablecoin-matters\">USDe stablecoin<\/a> issued by Ethena Labs, citing &#8220;serious deficiencies&#8221; and non-compliance with MiCA requirements.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>&#8220;BaFin has prohibited Ethena GmbH from further public offering of the USDe token and instructed the company to freeze the corresponding reserve assets with custodians,&#8221; the press release states.<\/em><\/p>\n<\/blockquote>\n<p>According to the regulator, the company took advantage of the transitional provisions for implementing MiCA.<\/p>\n<p>Under European cryptocurrency legislation, issuers of stablecoins pegged to other coins, who opened sales or applied for registration before June 30, 2024, are allowed to operate until a direct ban or the receipt of the appropriate license.<\/p>\n<p>Ethena&#8217;s application was submitted on July 29. The company offered USDe on the German market from June 28, although a &#8220;significant portion&#8221; of the tokens was issued outside Germany before that.<\/p>\n<p>The agency added that there are grounds to suspect Ethena of publicly offering securities in the form of the sUSDe token without proper registration.<\/p>\n<p>The regulator ordered the freezing of the project&#8217;s reserves, restricted the powers of managers over stored assets, blocked access to the website, and appointed a special representative to oversee the implementation of the prescribed measures.<\/p>\n<p>BaFin&#8217;s restrictions will not affect secondary market trading.<\/p>\n<p>Ethena Labs expressed disappointment with the regulator&#8217;s decision and noted that they will continue to &#8220;evaluate alternative frameworks.&#8221;<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Since its inception, Ethena has been exploring various options and jurisdictions when it comes to regulatory frameworks globally that would be conducive to our business, and as a result we have multiple entities within our structure facilitating minting and redemption. A MiCAR\u2026<\/p>\n<p>\u2014 Ethena Labs (@ethena_labs) <a href=\"https:\/\/twitter.com\/ethena_labs\/status\/1903106001470939402?ref_src=twsrc%5Etfw\">March 21, 2025<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>&#8220;This decision in no way disrupts current USDe listings or minting and redemption through Ethena (BVI) Limited. USDe remains fully backed. Contrary to reports, no assets have been &#8216;frozen,&#8217; and all remain available for redemption. Next week, we will review our Terms accordingly,&#8221; the developers commented.<\/em><\/p>\n<\/blockquote>\n<p>In March, Ethena Labs and Securitize <a href=\"https:\/\/forklog.com\/en\/news\/ethena-labs-and-securitize-launch-new-evm-blockchain-converge\">introduced<\/a> the new EVM blockchain Converge.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The German financial regulator BaFin has halted the sale of the USDe stablecoin issued by Ethena Labs, citing &#8220;serious deficiencies&#8221; and non-compliance with MiCA requirements. &#8220;BaFin has prohibited Ethena GmbH from further public offering of the USDe token and instructed the company to freeze the corresponding reserve assets with custodians,&#8221; the press release states. According [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":22315,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1500,109,1483,36,807],"class_list":["post-22316","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-ethena","tag-germany","tag-mica","tag-regulation","tag-stablecoins"],"aioseo_notices":[],"amp_enabled":true,"views":"42","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/22316","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=22316"}],"version-history":[{"count":0,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/22316\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/22315"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=22316"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=22316"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=22316"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}