German Regulator BaFin Bans Ethena GmbH from Selling USDe Stablecoin Due to Serious Deficiencies in MiCAR Compliance

The German Federal Financial Supervisory Authority (BaFin) has imposed a ban on Ethena GmbH, prohibiting the company from selling its USDe stablecoin to the public. This action follows BaFin's discovery of serious deficiencies in Ethena's approval process for the USDe tokens, which raised compliance concerns under the Markets in Crypto-Assets Regulation (MiCAR). The regulator's decision halts all public sales of the stablecoin, indicating that Ethena's license application in the EU has also been rejected due to suspicions that USDe may be classified as a security. The enforcement measures reflect BaFin's commitment to regulating the cryptocurrency market and ensuring compliance with existing financial regulations.

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