Synthetic Stablecoin Developer Etherna Labs circled German operations less than one month after regulators identified the “deficiency” in the USDE dollar (USDEUse) Stablecoin, a sign that investigation is rising around crypto assets in Europe’s largest economy.
The Etherna Labs reached an agreement with the Federal Financial Supervisory Authority of Germany, also known as Bafin, to stop all operations of its local subsidiary, Etherna GMBH, according to an April 15 announcement.
Source: ETHENA LABS
Consequently, Etherna labs “will no longer pursue Micar’s permission in Germany,” said the company, referring to the Crypto-Assets regulation markets.
The company has once again said that the German subsidiary of Ethena has not conducted any mint or redeeming activity for the USDE since March 21, the day Bafin prevented Stablecoin activities. Number Cointelegraph reported At this time, the German regulator recognized compliance failures and potential violations of security law tied to the USDE.
“All the white mints and redeem users who have previously been in contact with Etherna GMBH are in their request that has been included in Ethena (BVI) limited instead and has no ongoing relationship with Etherna GMBH whatever,” the company said.
Unlike popular stablecoins USDT (USDT) and USDC (USDC), The USDE of Ethhena maintains the dollar peg through an automatic delta-hedging approach that includes a combination of handling handles, onchain precaution and liquidity buffers.
The USDE is the fourth largest stablecoin with a total amount of circulating $ 4.9 billion, according to CoinMarketCap.
The $ 233-billion Stablecoin market is dominated by the USDT and USDC. Source: CoinMarketCap
Related: Northern Marianas vetoes Bill for Tinian to launch own USD Stablecoin
MICA has tightened the noose around the use of stablecoin
Mica is a Comprehensive framework for cryptocurrency use Throughout the European Union, which implements strict criteria for consumer compliance and protection.
To meet the new requirements, those who provided stablecoin should have enough reserves supporting their tokens, making sure the reserves are separated from the users’ ownership and fulfill regular reporting obligations.
Like February, 10 Stablecoin issues have been approved Under Mica, including Circle, Crypto.com, Societe Generale and Membrane Finance.
Patrick Hansen, senior director of the EU strategy and policy circle, told Cointelegraph that a total of 10 euro-pegged stablecoins and five US dollar-pegged stablecoins have been approved to date.
However, noticeable -noted that none of the list is Tether of USDT tetherthat decided not to pursue MICA registration at this time.
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