The German Financial Supervision Authority Bafin said that it identified “serious deficiencies” in the synthetic stablocoin of Ethena’s USDE.
Ethena is the performance generating protocol. The stablecoin has a market capitalization of $ 5.4 billion.
Ethena said in X that “it will continue to evaluate alternative frames”, after being notified that the “application under the regulatory framework of Micar will not be approved.”
In a statement, BAFIN said the deficiencies are related to the “Bank’s Business Organization and the violations of Micar’s requirements, such as those related to asset reserves and compliance with capital requirements.”
“Bafin also has reasonable reasons to suspect that Ethena GmbH is offering public values in Germany in the form of tokens’ its Ethena Opco. Ltd. without the required values leaflet,” said the regulator.
ENA Tokenhad de Ethena fell 6.5% in the last 24 hours, extending losses after the ad, according to CoinmarketCap data.
