Ethena Labs leaves the German market following an agreement with Bafin


The synthetic developer of the Stablescoin, Ethena Labs, ends with her German operations less than a month after the regulators identified “gaps” in his USDE pagouillé in dollars (TO USE) Stablecoin, reporting an increased examination of cryptographic assets in the largest economy in Europe.

Ethena Labs concluded an agreement with the Federal German Financial Supervision Authority, also known as Bafin, to stop all the operations of its local subsidiary, Ethena GmbH, according to an announcement of April 15.

Germany, European Union, Stablecoin, Mica

Source: Labs Ethena

As such, Ethena Labs “will no longer continue the authorization of micro in Germany,” said the company, referring to the Crypto-active markets regulations.

The company reiterated that the German subsidiary of Ethena has not carried out any mint or redemption activity for the USDE since March 21, the day Bafin interrupted the activities of Stablecoin. As Cointelegraph reported At the time, the German regulator identified the failures of compliance and the potential violations of securities law linked to the USDE.

“All mint users and re -evaluate users with Ethena GmbH with their request were on board with Ethena (BVI) Limited instead and have no continuous relationship with Ethena GmbH,” said the company.

Unlike the USDT popular stables (USDT) and USDC (USDC), The USDE of Ethena keeps its ankle in dollars through an automated Delta cash register strategy which includes a combination of punctual titles, police custody and liquidity pads.

The USDE is the fourth largest stablecoin with a total traffic value of $ 4.9 billion, according to CoinmarketCap.

Germany, European Union, Stablecoin, Mica

The $ 233 billion market in Stablecoin is dominated by the USDT and the USDC. Source: Coinmarketcap

In relation: Northern Marianas Vetoes Bill for Tinian to launch his own stablecoin USD

The mica tightens the knot flowing around the use of the stable

Mica is a Full framework for the use of cryptocurrencies Throughout the European Union, apply strict compliance standards and consumer protections.

To meet the new requirements, stablecoin issuers must have adequate reserves to support their tokens, ensure that reserve assets are separated from user assets and fulfill regular declaration obligations.

In February, 10 stablecoin transmitters have been approved Under Mica, including Circle, Crypto.com, Société Générale and membrane finance.

Patrick Hansen, principal director of Circle’s EU strategy and policy, told Cintelelegraph that a total of 10 pointed stables in euros and five stablescoins stable by a dollar have been approved so far.

However, especially absent from the list is USDT transmitter tapeWho has decided not to continue the mica recording for the moment.

https://www.youtube.com/watch?v=-f3rp7jgac

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