PANews reported on March 21 that according to an official statement from Ethena, Germany's BaFin has notified its Frankfurt-based entity Ethena GmbH that its MiCAR compliance application will not be approved, but the decision does not affect USDe's current exchange listing and the minting and redemption services through the British Virgin Islands entity Ethena (BVI) Limited.

Ethena emphasized that USDe is still fully asset-backed and has not been "frozen". Other regulatory paths will be evaluated in the future, and the relevant terms of service will be revised within the next week to reflect the current changes. This incident does not affect the normal use process of most users.