German regulator prohibits sales of Ethena USDe

The Federal Authority for German Financial Supervision, Bafin, ordered Ethena GmbH to end all the public sales of its USDE in Stablecoin.

This occurs after the German financial market regulator has found serious faults in the USDE approval process of Ethena GmbH.

By the bafin announcement On March 21, 2025, Ethena’s public sales (This one) Synthetic of the synthetic dollar TO USE Violates European Union markets in the registration rules for cryptographic assets.

The regulation of Stablescoin being one of the main priorities for applying the EU, the lack of micar compliance has become a key obstacle for stablecoin issuers.

“The Bafin also has reasonable reasons to suspect that Ethena GmbH in Germany sells titles in the form of Susde tokens of Ethena Opco. Ltd. without the required prospectus,” said the regulator.

Bafin therefore ordered Ethena to immediately cease any sale to the public.

Application measures

Application measures include a freezing on the USDE reserves held by the Ethena goalkeeper. In addition, Ethena GmbH is required to close its website portal and stop saving new customers.

While Ethena GmbH has been forbidden to sell the USDE, the order only applies to primary sales. In this case, the order of Bafin does not affect secondary sales. Ethena Labs published a statement on X according to the news.

“We have been informed today that Ethena GmbH’s request as part of the Thumber regulation will not be approved. Although we are disappointed by this decision, we will continue to assess alternative frameworks. ”

According to the Crypto platform, the order of Bafin does not affect the list of Stablecoin.

The decision will not affect the barge and the redemption via Ethena Limited, the entity of the company registered in the British Virgin Islands, which manages the majority of the USDE strike.

“The USDE remains completely supported [and] No assets were “frozen”, Ethena “noted.