Ethena Terminates German Operations After BaFin Rejects MiCAR Application

Ethena has announced that it has reached an agreement with the German Federal Financial Supervisory Authority (BaFin) to gradually terminate all activities of its entity Ethena GmbH based in Frankfurt. This decision comes after BaFin notified Ethena that the MiCAR compliance application of Ethena GmbH would not be approved. The regulatory body identified serious deficiencies in the USDe token registration process, leading to immediate enforcement action.

Ethena GmbH has not been involved in any minting or redemption activities since March 21, 2025. All related activities have been seamlessly transitioned to Ethena (BVI) Limited, ensuring that there are no ongoing issues. Users who previously interacted with Ethena GmbH have been successfully transitioned to Ethena (BVI) Limited, and there are currently no whitelist users or direct customers associated with Ethena GmbH.

This development does not affect the current exchange listing of USDe or the minting and redemption services provided through Ethena (BVI) Limited. Ethena has emphasized that USDe remains fully asset-backed, and there is no "freeze" situation. The company will no longer pursue MiCAR authorization in Germany, focusing its operations through its British Virgin Islands entity.

This move by Ethena highlights the challenges faced by cryptocurrency companies in navigating regulatory frameworks across different jurisdictions. The decision to terminate activities in Germany and focus on operations through Ethena (BVI) Limited demonstrates Ethena's commitment to compliance and its ability to adapt to regulatory changes. The company's assurance that USDe remains fully asset-backed provides reassurance to users and investors, despite the regulatory setback in Germany.