Decentralized finance (DeFi) protocol Ethena (ENA) has announced that it will cease operations in Germany after reaching an agreement with Germany’s financial regulator BaFin. The move comes after a recent warning from the regulatory agency, which highlighted “serious deficiencies” in the firm’s USDe token and accused the company of offering securities without proper authorization. In a statement posted on social media, Ethena said: “We have agreed with BaFin to terminate all activities of Ethena GmbH and will no longer pursue MiCAR authorization in Germany.” The company explained that it has not conducted any minting or redemption activities through its German entity Ethena GmbH since March 21, 2025. Related News: JUST IN: This Altcoin's Admin Account Was Hijacked by Hackers: Millions of Tokens Stolen - Sudden Drop in Price Ethena also explained that all related transactions have since been handled by its British Virgin Islands-based subsidiary Ethena (BVI) Limited, with users previously recruited through its German subsidiary moving to the BVI entity. “Ethena GmbH no longer has any whitelisted users or direct customers,” the company added. This development comes amid increased scrutiny of DeFi products by European regulators under the Crypto Asset Markets Regulation (MiCAR) framework, which is set to become fully enforceable in 2025. *This is not investment advice. Continue Reading: Binance-Listed Altcoin Settles with German Financial Regulator BaFin: Terminates Operations in Germany
