On the 21st of March 2023, according to an official statement from Ethena, Germany's BaFin has notified its entity Ethena GmbH located in Frankfurt that its MiCAR compliance application will not be approved. However, this decision does not affect the current exchange listings of USDe and the minting and redemption services through the British Virgin Islands entity Ethena (BVI) Limited. Ethena emphasizes that USDe remains fully asset-backed and there is no situation of being 'frozen'. Future regulatory pathways will be assessed, and the relevant terms of service will be revised in the coming week to reflect the current changes. This incident does not affect the normal usage process for most users.