Ethena Labs Exits the German Market — What Will the Impact Be?

Updated

April 17, 2025

Gambar Ethena Labs Exits the German Market — What Will the Impact Be?

Jakarta, Pintu News—A surprising announcement came from Ethena Labs, which officially ended its operations in Germany and withdrew its MiCA regulatory application. This decision was taken after the German authorities rejected the application due to various regulatory obstacles.

Check out the full news below!

Ethena Labs ceases 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

Ethena Labs, known as one of the decentralized finance protocols, has announced the closure of its branch in Germany. The German authorities rejected its application to comply with the European Union’s Market in Crypto Assets (MiCA) regulation.

In response, Ethena Labs transferred all USDe token minting and redemption activities to its entity in the British Virgin Islands, Ethena (BVI) Limited. Since the rejection, Ethena Gmbh has not conducted any mint or redemption activity.

Ethena (BVI) Limited has carried out all related operations without a hitch. This decision is expected to reduce the negative impact on their global operations despite having to close operations in the European market.

Also read: Bitcoin (BTC) heading towards $90,000, indicators show bullish signals?

Causes of Ethena’s Withdrawal from the German Market

Ethena Labs’ withdrawal from Germany was triggered by the rejection of its MiCA application submitted to BaFin, the German financial authority. BaFin had ordered to stop the public sale of USDe tokens, claiming that Ethena did not fulfil the Mica requirements.

This decision forced Ethena to cease all operations in Germany and shift its focus to other markets. Ethena Labs and several other companies in the crypto sector also experience these regulatory difficulties.

The newly enacted MiCA regulations have led to some major companies like Tether having to withdraw their stablecoins from EU exchanges. This opens up opportunities for other companies that manage to meet the regulations to fill the void left behind.

Impact on ENA Token Price

The announcement of the closure of operations in Germany and the withdrawal of the MiCA application significantly impacted the price of the ENA token. In the last 24 hours, the token’s price has dropped by more than 8%, with the current value sitting at $0.2918. This drop adds to the string of pressures the token has faced since rejecting the MiCA application.

Previously, when there was hope that Ethena Labs would get regulatory approval, the price of ENA had risen sharply. However, since the rejection, the token price has continued to experience bearish pressure compounded by global macroeconomic conditions.

Price predictions from CoinGape show that the maximum price of the ENA token in 2025 is $0.3036, while the lowest point is $0.26244.

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