Ethena Withdraws from German Market Amid Regulatory Concerns

Ethena Labs has announced its withdrawal from operations in Germany.

We have agreed with BaFin to wind down all activities of Ethena GMBH and will no longer be pursuing the MiCAR authorization in Germany.

As communicated previously, Ethena GmbH has not conducted any mint or redeem activity since March 21, 2025, and all activity has been carried…

— Ethena Labs (@ethena_labs) April 15, 2025

In March, the financial regulator BaFin ordered the company to cease the sale of the USDe stablecoin. The decision was attributed to “serious deficiencies” and non-compliance with MiCA requirements.

According to the company’s statement, the German division Ethena GmbH will completely cease operations and abandon efforts to obtain the MiCA license necessary for legal operations in the country.

Users will no longer be able to exchange USDe through Ethena GmbH, although secondary trading of the asset will continue without restrictions.

Clients of the German division have been transferred to the services of Ethena BVI, registered in the British Virgin Islands.

Back in September 2024, the BKA shut down 47 illegal bitcoin exchanges used by ransomware operators, botnet owners, and darknet marketplace vendors.