“Ethena’s Ena Token is Down by 6.5% in the Past 24 Hours.”, – WRITE: www.coindesk.com
The European Union’s Market in Crypto Assets (Mica) Regulations for Issuers of Stablecoins, Tokens Whose Value Is Tied to Anther Asset, Took Effect on June 30 Last Year. Ethena Gmbh Has Been Issuing USDE Since June 28, Accounting To Bafin. Companies Were ALLOWED TO Continue Issuing their Tokens While Apply for a Mica License, Unless ordered to stop.
“Durying the Ongoing Licensing Process, Bafin Has Identified, Among Other Things, Serious deficiencies in the Bank’s Business Organization and Violations of Micar Requers, Suh Compliment with Capital Requirements, “The Regulator Said.
USDE Counts As An Asset-Referenited Token Because It Is “A Crypto Asset Whose Value Stability Is To Be Maintaned BY REFERENCE TO Other Assets, Rights, OR Currencies, OR.
Ethena is the yield-generation Protocol that markets the $ 5.4 Billion Token As A “Synthetic Dollar” with It Price Anchored at $ 1. The token uses Cryptocurrencies including Bitcoin (BTC) and Ether (ETH) As Backing Assets, Paaing Them with An Equal Value of Stort Perpetuval Futures of Exchanges on Var.
The Strategy Generates Income for the Protocol WHEN Perpetual Funding Rates Are Positive and Passes on Some of the Income As Yield to Those Who Stake USDE (Susde). The Protocol Also Issues of the USDTB Stablecoin, Backed by Blackrock’s Tokenized Treasury Bill Fund.
“Bafin Also Has Reasonable Gunds to Suspect That Ehena Gmbh Is Publicly Offering Securities in Germany in the Form of ‘Susde’ Tokens of Ethna Opco. Lt. Prospectus, “The Regulator Said.
Ethena said on x that it will “Continue to Evalue Alternative Framework,” After Being Notified that “Application Under the Micar Regulatory Framework Will Not Bepaved.”
Ethena’s Governance Token, Ena, Had Droped 6.5% in the Past 24 Hours, Extending Losses Following the Announcement, Accounting to CoinMarketCap Data.
Krisztian Sandor Contributed to this Article.
Update (March 21, 16:37 UTC): Adds Mica in Second Paragraph, Regulator Quote in Third, USDE Explanation Starting in Fifth.
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