German Regulator Halts USDe Token Sales by Ethena GmbH Over Issues
The post German Regulator Halts USDe Token Sales by Ethena GmbH Over Issues appeared on BitcoinEthereumNews.com.
The German financial regulatory authority, BaFin, has ordered the suspension of all public sales of the USDe token issued by Ethena GmbH. BaFin’s decision stems from concerns that the token violates European Union regulations and potentially constitutes unregistered securities. Ethena GmbH, the Frankfurt-based issuer, has been accused of significant compliance failures, which led to the ban on the primary offering of the token. BaFin Halts USDe Token Sales by Ethena GmbH BaFin’s order prohibits Ethena GmbH from selling the USDe token to the public. The German regulator has also restrained the company from using the reserves to support the token and has closed the online platform that the firm was using. Furthermore, there is no option for Ethena GmbH to accept new customers anymore, as BaFin has prohibited it. These measures are intended to slow down any developments of events that are associated with the sale and distribution of the token relative to the legal rules set by the MiCAR within the European Union. Consequently, in its announcement, BaFin has expressed concerns regarding the matters wherein Ethena GmbH offered securities without prior registration in Germany. BaFin, for their part, believe that the company is engaging in securities selling without a prospectus, a violation of German Securities Law. The regulator also made mention of the USDe token which represents a synthetic dollar that is associated with another token, sUSDe. This interconnection may potentially deepen the regulation issue even more. Investigation of Token Issuance Process BaFin points out that Ethena GmbH has failed to adhere to some of the standard procedures in its approval process that involves issuing USDe tokens. The first question that has been asked there is the lack of compliance with MiCAR, the new regulation of the European Union on crypto-assets. According to BaFin, the company failed to meet…
Filed under: News - @ March 22, 2025 5:17 am