Germany’s financial authority Bafin decisive Ethena GmbH will stop giving the EU’s synthetic stablecoin USDE, referring to the major harmony failures under the EU regulation (MICA) markets (MICA).
Ethena Labs, known for its $ 5.4 billion synthetic dollar coin, is now banned from presenting USDE to the public in Germany. Bafin marked critical problems, including inadequate asset reserves and capital requirements in Ethena GmbH’s business structure. The agency also suspects the company, which is not registered in the form of getones in silence without making a compulsory prospectus.
Although the company made a license application before the last year, Bafin’s investigation has described it as “serious deficiencies ,, which led to the immediate stop in the expulsion of jeeton. According to MICA’s transition rules, companies may operate while waiting for approval, but after the violations are found, this RAFS period ends.
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Ethena responds and ENA coin falls
In contrast, Ethena Labs said that the German organization is only part of the wider strategy and that basic operations continued through the BVI -based branch Ethena (BVI) LTD. The team announced that assets are not freezing and that the firefalls remain active for existing users outside the EU.
Despite security, the market reacted negatively. According to CoinMarketcap, Ethena’s governance coin Ena fell by 6.5% within 24 hours after Bafin’s announcement.
Blockchain’s model is based on crypto assets such as BTC and ETH, which are constantly paired with short positions to fix the USDE’s value to $ 1. Although this approach is new, it does not rely on the traditional Fiat reserves of Mika, which have conducted an examination under asset -supported coin rules.
Bafin now coordinates with the European Central Bank and other EU regulators and points to the progress of more strict sanctions. The decision for Ethena is waiting for the expansion of Europe and arouses doubt the future of synthetic stablecoins under the legal framework of MICA.
