The post BaFin Bans USDe Offering by Ethena GmbH in Germany appeared on BitcoinEthereumNews.com.

BaFin banned Ethena GmbH from offering USDe due to major approval procedure shortcomings. Ethena Labs assures USDe remains redeemable globally through its BVI-based entity. The decisive move comes from the German financial regulator, BaFin, which has just imposed a ban on Ethena GmbH, a subsidiary of Germany-based Ethena Labs. The main reason? “Serious deficiencies in the approval procedures.” This action means that Ethena GmbH is no longer allowed to offer the USDe stablecoin publicly in the country. Ethena Labs quickly responded by stating that the ban does not affect the USDe minting or redemption process globally. Minting and redemption activities can still run normally through their British Virgin Islands-based entity, Ethena (BVI) Limited. 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… — Ethena Labs (@ethena_labs) March 21, 2025 So, for users who are used to minting USDe through the platform, there are no drastic changes. Assets are also safe—nothing is frozen, and everything is still available for redemption. Meanwhile, following this news, ENA is trading at about $0.3587, corrected 1.61% over the last 24 hours and down 3.08% over the last 7 days. Despite Record Withdrawals, USDe Keeps Its Balance On the other hand, this drama comes just a few weeks after USDe set a redemption record. According to a CNF report, in early March, the stablecoin experienced a withdrawal of $268 million in just one day. This figure reduced the circulating supply by 4.7%. Interestingly, despite the large amount of redemption, the price of USDe remained stable. There were no sharp spikes or drops that usually make your heart beat faster, like riding a roller…

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Filed under: News - @ March 22, 2025 4:24 pm