Ethena has violations, required to stop providing USDe
BaFin – the German financial supervisory authority – has ordered Ethena GmbH, a subsidiary of Ethena Labs in Frankfurt, to immediately cease providing USDe to the public. According to BaFin, Ethena GmbH faces "shortcomings" in the token licensing process, violating the MiCA regulations of the European Union (EU).
USDe, promoted as "synthetic USD" based on crypto assets and delta-hedging strategies, was once expected to be an innovative alternative to traditional stablecoins like USDC or USDT.
Ethena Labs quickly spoke out on X, asserting that the restriction order does not affect the current USDe listing or the minting and redemption activities through Ethena BVI Limited – the subsidiary in the British Virgin Islands, which handles the majority of user demand.
