Ethena Labs Leaves Germany

Ethena Labs is officially shutting down its German branch and EU operations following the rejection of its MiCA application. Over the past month, the firm has been preparing to exit this market.

While this move was anticipated, the price of ENA dropped over 7% after today’s announcement.

Ethena Labs has faced ongoing regulatory challenges in Europe. In late March, German authorities rejected its MiCA compliance application.

At that time, Ethena Labs described it as a minor hurdle and planned to focus on other markets. Today, it confirmed the closure of its German branch.

“We have agreed with BaFin to wind down all activities of Ethena GmbH and will no longer pursue MiCAR authorization in Germany. All whitelisted users previously interacting with Ethena GmbH have been transferred to Ethena (BVI) Limited upon their request,” the company stated.