BaFin Orders the Immediate Halt of USDe Token Public Sale

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 Federal Financial Supervisory Authority (BaFin) has ordered the immediate cessation of the public sale of the USDe token, a synthetic currency issued by the company Ethena GmbH.

The decision follows alleged violations of the European regulation on cryptocurrency markets (MiCAR), highlighting a failure to comply with administrative obligations.

In response, BaFin has 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 affected.

Violations of European regulations and measures taken by BaFin for the USDe token of Ethena GmbH

BaFin has issued an order that enforces the immediate suspension 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, and believes 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 closure of the company’s website and social media channels.

* The freezing of the reserves supporting the USDe token.

* A complete cessation of all advertising activity for the token.

* The cancellation of any events organized by Ethena GmbH to promote the USDe token.

These measures are aimed at mitigating investor risks and ensuring that the cryptocurrency market operates in accordance with the current regulations in the European Union.

According to BaFin, the issue does not concern only the USDe token, but also its linked version, the sUSDe.

The regulator explained that the two assets are closely connected in a reciprocal exchange mechanism, where investors can obtain the sUSDe tokens in exchange for USDe.

BaFin stated that it has reasonable suspicion that Ethena GmbH 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 mandate 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 affected.

This implies that users will still be able to exchange tokens among themselves without direct implications on decentralized trading platforms or on third-party exchange.

However, the measure launched by BaFin once again sheds light on 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 regulations similar to those applied to traditional financial instruments.

The decision of BaFin sends a clear signal to the cryptocurrency industry: European authorities are intensifying controls to verify that digital tokens adhere to financial market regulations.

This case could pave the way for further interventions by regulators on other crypto initiatives that fail to 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 present, there are no official statements from the company Ethena GmbH concerning this measure. However, the matter remains in development and further details may emerge in the coming days.