Market Data 
Ethena Labs has officially pulled out of Germany and is no longer seeking MiCAR licensing. This exit comes weeks after shifting stablecoin operations to its offshore entity in the British Virgin Islands (BVI). Ethena’s move is a sign of growing industry discomfort around Europe’s strict regulations.
Why Did Ethena Labs Exit Germany and Drop MiCAR License?
The issuer behind the USDe stablecoin had reached an agreement with BaFin, the country’s financial regulator to shut down its German subsidiary, Ethena GmbH.
In a recent post on X, Ethena revealed that since March 21, no minting or redemption of USDe took place through its German entity. Instead, Ethena (BVI) Limited has assumed full operational control, processing all activity without disruption.
In its official statement, the crypto firm clarified that all previously whitelisted users in Germany have been seamlessly onboarded to the BVI-based platform at their request, leaving Ethena GmbH with no direct customers or ongoing operations.
While Ethena offered no specific reason, market observers point to MiCAR’s strict compliance demands as a key deterrent for firms that prioritize speed, flexibility, and privacy.
How Strict is Europe’s MiCAR Regulation Proving to Be?
Ethena’s exit aligns with a broader trend of crypto firms reassessing their European strategy as MiCAR enforcement nears.
The difficulty in meeting MiCAR’s requirements was also highlighted by Circle executive Patrick Hansen, citing ESMA figures as of April 14, reported only 11 stablecoin issuers and 15 crypto-asset service providers (CASPs) had received MiCA licenses across the entire European Economic Area (EEA).
Hansen emphasized that without a MiCA license, crypto firms cannot offer their services across the 30 countries in the European Economic Area (EEA).
In more signs of increasing enforcement, Italy’s financial authority, CONSOB, was also seen adding 15 names to its list of non-compliant entities, under the new framework.
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