Stablecoin developer Ethena Labs has agreed with Germany’s financial supervisory authority, BaFin, to wind down all activities of its German subsidiary, Ethena GmbH. The firm announced the latest regulatory development to its community of users via X (formerly Twitter).
Notably, the announcement marks a shift in the company’s direction following mounting regulatory pressures in Europe. The firm noted that it has ended its pursuit for the Markets in Crypto Assets (MiCA) Regulatory License in Germany.
Ethena GmbH Halts Operations
In line with the new development, the firm plans to maintain operational continuity for its users. While Ethena GmbH has not conducted any mint or redeem activity since March 21, 2025, all operational functions have been transferred to Ethena British Virgin Islands (BVI).
The company clarified that all whitelisted users who previously interacted with Ethena GmbH have been onboarded with the BVI entity, ensuring they have no remaining ongoing relationship with the now defunct subsidiary.
The restructuring comes after heightened regulatory scrutiny, as BaFin has been cracking down on operational practices that fall short of Europe’s MiCA framework. Ethena Labs aims to mitigate further regulatory risks by winding down its German operations. The company may reposition itself in a more favorable jurisdiction.
Meanwhile, despite its regulatory hurdle in Germany, the stablecoin firm has made some progressive moves. A few months ago, it partnered with Securitize and launched USDtb, a stablecoin whose reserves are allocated to BlackRock’s USD Institutional Digital Liquidity (BUIDL) fund.
Other Firms Respond to MiCA
The MiCA Regulation has prompted adjustments within the crypto industry as firms strive to align with the new regulatory framework. OKX secured the license in January 2025, enabling the exchange to offer crypto services across all 30 European Economic Area (EEA) member states.
However, things have not been rosy for crypto firms like Tether, as several exchanges delisted its USDT for European users. In response, the company plans to expand its operations in the U.S. following the favorable crypto regulatory climate that has been taking shape since the establishment of the new Trump administration.
Traditional firms are also affected, as Google has recently announced plans to implement MiCA’s rules for crypto advertisements in Europe. Starting in July 2025, advertisers promoting crypto-related content to EU audiences must adhere to MiCA’s guidelines.
