BaFin ends Ethena case with USDe redemption deadline set for Aug 6, marking the end of a four-month conflict.
Moca Chain launches layer-1 blockchain for digital identity use cases, focusing on decentralized identity management.
Barclays restricts crypto spending on credit cards starting June 27, citing consumer debt and regulatory concerns.
Today, the crypto market experienced significant regulatory and infrastructure developments. German authorities resolved a prominent enforcement case involving Ethena’s stablecoin operations. Meanwhile, a newly announced blockchain project, supported by Animoca, was introduced with the theme of digital identity.
In the UK, Barclays Bank confirmed it will block credit card crypto purchases starting June 27, citing rising debt risks and regulatory gaps. The developments are part of an ongoing push to define the future of crypto by providing legal certainty and decentralized development.
The BaFin, the German Federal Financial Supervisory Authority, has ended its regulatory action against Ethena GmbH. Ethena Labs confirmed on Wednesday that BaFin and the company agreed on a 42-day USDe redemption plan. This plan gives current USDe stablecoin holders until August 6 to submit redemption claims to Ethena GmbH.
BaFin appointed a special representative to oversee the redemption process. After the deadline, the firm will officially cease its USDe-related operations within Germany, the European Union, and the European Economic Area. Any unresolved claims after August 6 must be handled through Ethena’s offshore unit, Ethena (BVI) Ltd.
The resolution marks the end of a four-month conflict. BaFin had blocked Ethena GmbH from offering its USDe stablecoin to the public in March, citing violations of the EU’s Markets in Crypto-Assets Regulation (MiCA). The company’s USDe token was also flagged as a non-compliant yield-bearing security. Following the ban, Ethena GmbH halted all operations and did not pursue further MiCA licensing.
Despite regulatory challenges, over 5.6 billion USDe tokens remain in global circulation. Ethena Labs has not disclosed if it plans to re-enter the European market in the future.
The Moca Foundation has launched Moca Chain, a new Ethereum Virtual Machine (EVM)-compatible layer-1 network focused on decentralized identity. The blockchain is designed to allow users, devices, and AI agents to manage and verify identity credentials without centralized control.
The foundation said that Moca Chain will support both on-chain and off-chain identity verification. Its native MOCA token will serve multiple functions, including validator staking, data storage, oracle usage, and identity authentication fees. The testnet is scheduled for Q3 2025, with mainnet deployment set for Q4 2025.
Moca Chain incorporates privacy features such as zero-knowledge transport layer security (ZK-TLS). Its architecture includes decentralized data storage and a cross-chain identity oracle. According to the foundation, this structure enables compatibility with Ethereum and similar chains.
The AIR Kit identity software is already integrated with services from Animoca Brands and its affiliates. The foundation claims Moca’s partner ecosystem spans over 700 million users, including platforms like South Korea’s OK Cashbag and Germany’s One Football. These services will feed identity data into the Moca Chain network.
Barclays Bank has recently announced its intention to prohibit cryptocurrency purchases with its credit cards, effective January 27, 2025. The UK-based bank highlighted concerns regarding consumer debt, fluctuating prices, and the absence of regulatory protections in the cryptocurrency market.
According to the bank, customers who purchase cryptocurrencies using borrowed money may incur losses that they cannot afford. It also highlighted that the Financial Ombudsman Service and the Financial Services Compensation Scheme do not provide coverage to purchases of crypto.
This change in policy aligns with increasing caution among UK financial institutions. Barclays follows the example of other major banks and prevents access to crypto markets using conventional payment instruments. The Financial Conduct Authority (FCA) has issued a warning to the public regarding the risks associated with non-regulated crypto activity.
Barclays urged clients to consult the FCA site to learn more about the risks of crypto. The announcement is part of a broader policy shift among UK regulators. At the beginning of the month the Bank of England announced its intention to restrict banks' exposure to crypto assets by 2026.