The BaFin, the Federal Financial Supervisory Authority of Germany, has ordered the immediate halt to the public sale of the USDe token, a synthetic currency issued by the company Ethena GmbH.
The decision was made following alleged violations of the European regulation on cryptocurrency markets (MiCAR), highlighting the failure to comply with compliance obligations.
The BaFin has also frozen the reserves that support the token and imposed the closure of the company’s website. However, secondary sales of the token will not be blocked.
Violations of European regulations and measures taken by BaFin for the USDe token of Ethena GmbH
BaFin has issued an order that imposes the immediate halt of the primary sale of the USDe token, highlighting several issues in the regulatory requirements followed by the company Ethena GmbH.
According to the official statement, the regulator has identified a possible violation of European financial securities regulations, believing that the token was marketed without the necessary information prospectus required by the MiCAR (Markets in Crypto-Assets Regulation).
In addition to the sales ban, BaFin has also ordered:
- – The freezing of the guarantee reserves that support the value of the USDe token.
- – The closure of the online platform through which the company operated.
- – The immediate cessation of acquiring new clients.
These measures are aimed at preventing risks for investors and ensuring that the cryptocurrency market operates in compliance with the current regulations in the European Union.
According to BaFin, the problem does not concern only the USDe token, but also its linked version, the sUSDe.
The regulator emphasized that the two assets are closely connected in a reciprocal exchange mechanism, in which investors can obtain the sUSDe tokens in exchange for USDe.
BaFin has stated that it has reasonable grounds to suspect that Ethena GmbH has marketed the sUSDe tokens as financial instruments without the required prospectus.
This type of violation represents a serious infringement of European financial market laws, which impose strict rules on transparency and investor protection.
The impact on the markets and the position of BaFin
Despite the ban on primary sales, BaFin clarified that transactions of USDe and sUSDe in secondary markets will not be blocked.
This means that users will be able to continue exchanging tokens among themselves without direct implications on decentralized trading platforms or on third-party exchange.
However, the measure launched by BaFin once again highlights the growing attention of European regulators in monitoring the cryptocurrency market.
With the entry into force of the MiCAR regulation, the European Union is adopting stricter policies to ensure that digital assets comply with rules similar to those applied to traditional financial instruments.
The decision of BaFin represents a clear signal for the cryptocurrency industry: European authorities are intensifying controls to ensure that digital tokens comply with financial market regulations.
This case could pave the way for further interventions by regulators on other crypto initiatives that do not meet the requirements set by MiCAR.
Ethena GmbH will now have to face the consequences of its alleged violations and may be forced to fully comply with European regulations to resume its operations.
At the moment, there are no official statements from the company Ethena GmbH regarding the measure. However, the matter remains in development and further details may emerge in the coming days.
