Ethena(ENA) "No USDe Freeze Despite German Ban... Issuance and Redemption Proceeding Normally"
Summary
- Ethena Labs reported that despite the German financial authority's ban, the issuance and redemption of USDe are being maintained.
- USDe continues to receive support in various regulatory environments, and there have been no instances of freezing.
- The terms of service are set to be amended, but it was emphasized that this does not affect the general usage for most users.
The German Federal Financial Supervisory Authority (BaFin) has banned the provision of the stablecoin after discovering serious compliance deficiencies in the USDe token approval process by Ethena(ENA) GmbH. Ethena Labs stated, "This decision does not affect the listing of USDe on exchanges or the issuance and redemption services through its British Virgin Islands subsidiary, Ethena BVI Limited."
Ethena explained, "Since its inception, we have explored various options and jurisdictions related to the global regulatory framework," adding, "We have several entities facilitating issuance and redemption, and MiCA approval through Ethena GmbH is just one of many options."
They continued, "This is merely a case of the MiCA regulatory framework application not being approved, and we will continue to evaluate alternative frameworks," emphasizing, "USDe is still supported, and contrary to some reports, there have been no instances of USDe being frozen due to MiCAR (MiCA Regulation Application)."
Additionally, they mentioned, "We plan to amend the terms of service in accordance with the relevant measures, which will be completed by next week," adding, "These measures do not affect the general usage process for the majority of users."
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
