Ethena Exits Germany, Withdraws MiCAR Operations; Here’s Why

In a surprising development, decentralized finance (DeFi) protocol Ethena Labs has announced via its official X account that the firm has reached an agreement with German watchdog BaFin to end operations in the country. The company also announced that it is withdrawing its MiCAR application in Germany.

Ethena Labs Ceases Operations in Germany: Know More

Ethena Labs has taken a bold move to cease its operations in Germany. The platform has reportedly reached an agreement with BaFin to end all activities of the firm’s German subsidiary, Ethena GmbH. In addition, the platform has abandoned its efforts to attain regulatory approval under the EU’s Markets in Crypto-Assets Regulation. The platform’s X thread read,

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

What Forces Ethena To Shut Down?

Notably, Ethena faced an enforcement action from the German regulators in March 2025. The BaFin ordered the DeFi platform to halt public sales of its USDe token, citing MiCAR non-compliance issues.

In its recent announcement, the firm asserted that the platform has conducted all minting and redemption activites of USDe via its British Virgin Islands entity, Ethena Limited. The platform noted, “Ethena GmbH has not conducted any mint or redeem activity since March 21, 2025, and all activity has been carried out by Ethena (BVI) Limited without any pause or issue.”

This development comes following Europe’s increasing efforts in fostering crypto growth and development. Despite the US’ strategic measures and developments, Europe leads in crypto banking, CoinGape recently noted.

ENA Price Dips Amid German Business Halt

In response to this significant development, the ENA token has experienced a severe downturn. Over the past 24 hours, ENA declined by more than 8%. Currently trading at $0.2918, the token has plummeted by 2.2% and 18.85% over the past week and past month, respectively.

According to CoinGape’s Ethena price prediction, the maximum limit of the token in 2025 is $0.3036. Meanwhile, the lowest point is $0.26244.