The German financial regulator BaFin has prohibited the public sales of the synthetic dollar USDe by Ethena GmbH, stating that the token violates the European Union’s MiCAR regulations.
USDe Sales Ban
BaFin has decided to prohibit all public sales of the USDe token created by Ethena GmbH, citing that it violates the MiCAR regulations of the European Union.
Reserve Assets and Further Actions
According to the announcement, BaFin has ordered the freezing of reserve assets backing the USDe token and the closure of the company's website portal. Additionally, the firm has been ordered to stop accepting new customers.
Secondary Sales and Implications
Despite the ban on the primary sales and issuance of the token, the regulator has stated that secondary sales of the token will not be prohibited or affected.
This is a developing story, and further information will be added as it becomes available.
