Algorithmic Ratings & Investment Analysis
©ARIA 2025
by aria-crypto.com
April 15, 2025 at 20:39
German Regulator Shuts Down Ethena as Stablecoin Faces Compliance Issues
Ethena GmbH has announced its withdrawal from the German market, following regulatory scrutiny from BaFin regarding its USDe stablecoin.
The firm, which offers a U.S. dollar-backed synthetic dollar, ceased all minting and redeeming activities in Germany on March 21, 2025.
In a recent social media post, Ethena confirmed it would no longer pursue a Markets in Crypto-Assets Regulation (MiCA) license necessary for operating within Germany.
This closure comes in response to BaFin identifying "serious deficiencies" in Ethena's compliance with local securities laws.
Consequently, all German operations have been transferred to Ethena's subsidiary in the British Virgin Islands.
Holders of USDe can still trade their tokens on secondary markets, though direct interactions with Ethena GmbH have ceased.
This event underscores the increasing regulatory pressures on decentralized finance (DeFi) protocols in Europe, as authorities enhance oversight ahead of MiCAR implementation.
Ethena's native token, ENA, has seen a decline of over 6% recently, reflecting broader market trends.
With nearly $4.9 billion total value locked in the protocol, Ethena remains a significant entity in DeFi despite its challenges.
The situation serves as a cautionary tale for crypto firms navigating the evolving regulatory landscape across Europe.
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