Ethena Agrees With Regulator to Withdraw From German Market

Decentralized concern (DeFi) protocol Ethena has agreed to upwind down its operations successful Germany.

The determination comes 3 weeks aft BaFin, Germany's concern regulator, identified "serious deficiencies" successful Ethena's USDe token and said that the institution was offering securities successful Germany without approval.

"We person agreed with BaFin to upwind down each activities of Ethena GMBH and volition nary longer beryllium pursuing the MiCAR authorization successful Germany," Ethena said successful a tweet.

It added that each erstwhile users volition beryllium onboarded to Ethena BVI, the protocol's entity successful the British Virgin Islands.

Ethena is the yield-generating protocol with $4.9 cardinal successful full worth locked (TVL). The USDe token is dubbed a "synthetic dollar" and is backed by bitcoin (BTC), ether (ETH) and different cryptocurrencies.

Ethena's ENA token is down by 2.88% successful the past 24 hours, underperforming against the wider marketplace which is up 1.17%, according to CoinMarketCap.