“`html
Ethena Labs declared on Wednesday that the German Federal Financial Supervisory Authority, BaFin, and Ethena GmbH, the organization’s German division, have settled on a redemption strategy for USDe stablecoin holders.
The regulator announced it had commenced a 42-day redemption procedure for stablecoin holders. BaFin mentioned that USDe holders will have until Aug. 6 to submit redemption claims directly to Ethena GmbH. The procedure will be overseen by a special representative appointed by BaFin.
Following the cutoff date, Ethena GmbH will be regarded as officially dissolved within Germany, the European Union, and the European Economic Area (EEA). This implies that any claims from Aug. 7 onward should be filed through the company’s offshore affiliate, Ethena (BVI) Ltd.
Ethena Labs indicated that subsequent to the complete execution of the redemption plan, Ethena GmbH will have no “lingering matters related to Ethena GmbH’s USDe operations.” However, the company did not specify whether it intends to re-enter the EU and EEA markets.
BaFin concludes four-month dispute with Ethena GmbH
This announcement follows a four-month dispute between Ethena and the German financial authority. On March 21, BaFin prohibited Ethena GmbH from publicly offering its USDe stablecoin, citing breaches of the EU’s Markets in Crypto-Assets Regulation (MiCA).
The government agency accused the firm of selling unregistered securities through its yield-bearing sUSDe tokens, which are associated with the USDe stablecoin.
The regulator enforced penalties, which included freezing USDe reserve assets, shutting down the company’s website and portal, and ordering the organization to halt services for new users.
Related: Bitpanda secures third MiCA license in home jurisdiction of Austria
On April 15, Ethena Labs began to wind down all operations of its German subsidiary. At that moment, the company stated it would no longer seek its MiCA authorization in Germany.
The organization indicated that its German subsidiary had not engaged in any minting or redemption activities for USDe since March 21, when the regulator enacted its enforcement measures on Ethena GmbH.
Ethena GmbH submitted an application for the MiCA authorization on July 29, 2024. Nonetheless, BaFin denied the application in March, citing compliance shortcomings from Ethena GmbH.
Despite this, nearly 5.6 billion tokens remain in circulation, most of which were issued prior to the MiCA framework coming into force and are distributed worldwide.
Magazine: New York’s PubKey Bitcoin bar will orange-pill Washington DC next
Source link
“`
