Ethena Labs exits Germany, abandons MiCA license effort

Ethena Labs, the team behind the Synthetic USDE stablecoin, announced that it had closed its German subsidiary, Ethena GmbH.

Ethena Labs will no longer continue regulatory approval under the EU markets regulations in crypto-sets. The decision follows a March application action By the German financial regulator, Bafin, who ordered the company to stop all the public sales of the USDE (TO USE) Due to the non-compliance with a micicar.

In a statement Published on X, Ethena Labs confirmed that she had entered into an agreement with Bafin to complete all the activities of his German entity. The company stressed that since March 21, all the strikes and redemptions of the USDE have been carried out via Ethena Limited, its entity in the British Virgin Islands.

Users previously integrated via Ethena GmbH went to the BVI platform, and the German entity no longer has customers or active operations.

Ethena’s “serious faults”

Bafin’s March Ordinance cited the “serious defects” in Ethena GmbH’s approval process and raised concerns that the company sells not registered titles in the form of Susde tokens. The regulator has also frozen the reserves of the USDE held by the Ethena goalkeeper, forced the closure of the local website website and prohibited the integration of customers.

Although regulatory repression only affects primary sales, Ethena said that the USDE list on the secondary markets does not remain affected. The company said it was disappointed with the denial of microphone, but continued to assess alternative regulatory routes.

Compliance with Stablecoin has become a key objective of EU regulators before the full implementation of a Thumber. The exit of Ethena from the German market highlights the growing pressure on cryptographic issuers to navigate a fragmented but tightening European regulatory landscape.