Ethena Response to BaFin Ban: USDe Not Frozen, Minting and Redemption Services Operating Normally

BlockBeats News, March 21st, according to an official statement from Ethena, Germany's BaFin has notified that the MiCAR compliance application of Ethena GmbH, based in Frankfurt, will not be approved. However, this decision does not affect the current exchange listing of USDe or the minting and redemption services through Ethena (BVI) Limited, a British Virgin Islands entity. Ethena has emphasized that USDe remains fully asset-backed and there is no "freeze" situation. Alternative regulatory paths will be evaluated in the future, and relevant terms of service will be revised in the next week to reflect the current changes. This event does not affect the normal usage process for the majority of users.

Previously, the German financial regulatory authority BaFin identified serious deficiencies in the USDe token registration process of Ethena GmbH and immediately took enforcement action. BaFin prohibited Ethena GmbH from further publicly offering its USDe tokens and instructed the company to have the respective asset reserve frozen by the custodian. BaFin also appointed a special supervisor to oversee the implementation of these measures. In addition, BaFin publicly expressed suspicion that Ethena GmbH in Germany publicly offered securities without the necessary prospectus. BaFin is reviewing further regulatory measures, including a ban on the public offering of these securities.