Ethena negotiates with regulator to leave German market

Ethena reaches agreement with regulator to exit German market

All current users will be transferred to Ethena's British Virgin Islands facility.

Oliver Knight | Edited by Stephen Alpher Updated April 15, 2025, 2:11 PM Published April 15, 2025, 2:04 PM

What you should know:

• Ethena has confirmed its intention to cease operations in Germany while moving existing users to its British Virgin Islands unit.
• Three weeks ago, BaFin found “serious flaws” in Ethena’s USDe token.
• Over the past 24 hours, the price of ENA has fallen by 2.88%.

Decentralized finance (DeFi) protocol Ethena has agreed to shut down its operations in Germany.

The decision comes three weeks after BaFin, Germany's financial regulator, found “serious deficiencies” in Ethena's USDe token and said the company was offering securities in Germany without proper approval.

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“We have reached an agreement with BaFin to terminate all operations of Ethena GMBH and will no longer seek MiCAR approval in Germany,” Ethena said on Twitter.

It was also stated that all previous users would be transferred to Ethena BVI, the protocol's host in the British Virgin Islands.

Ethena is a revenue-generating protocol with a total value locked (TVL) of $4.9 billion. The USDe token is called the “synthetic dollar” and is backed by Bitcoin (BTC), Ethereum (ETH), and other cryptocurrencies.

Ethena's ENA token is down 2.88% over the past 24 hours, according to CoinMarketCap, below the overall market's gain of 1.17%.

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