Ethena Labs Withdraws From German Crypto Market After BaFin Concerns

Synthetic stablecoin developer Ethena Labs has closed its German operations less than a month after regulators flagged compliance issues with its USDe token. The decision follows an agreement with Germany’s Federal Financial Supervisory Authority, or BaFin, to cease all local operations under the subsidiary Ethena GmbH. Ethena Labs claims no mint or redeem activity for USDe has taken place since March 21st when BaFin halted the stablecoin’s activities.