Ethena Labs, a well-known Ethereum-based protocol for synthetic dollar $USDe, has announced the closure of operations in Germany. As per Ethena Labs, in line with its agreement with the Federal Financial Supervisory Authority (BaFin), the platform is shutting down the operations of its German subsidiary Ethena GmbH. The company revealed this development on social media in a recent post.
Ethena Labs Winds Down Germany-Based Ethena GmbH’s Operations
As per the Ethena’s announcement, it is winding down the operations of its German subsidiary going by Ethena GmbH, after an agreement with the Federal Finanical Supervisory Authority (BaFin). As a result of this, the platform will not pursue the Markets in Crypto-Assets Regulation authorization within the German jurisdiction.
This decision occurs following the shutdown of Ethena GmbH’s redemption and minting operations. This took place back on March 21. Since that time, Ethena Labs’ British Virgin Islands-based subsidiary Ethena (BVI) Limited has been managing the operational functions. In this respect, this platform has been continuously providing its services to the consumers
Users Seemlessly Onboarded on Ethena (BVI) Limited
Moreover, the platform has already informed the consumers that the respective shift from Ethena GmbH to Ethena (BVI) Limited was smooth. In this respect, the consumers were onboarded on the latter without any issue. Hence, the consumers no longer have any relationship with Ethena Labs’ German subsidiary Ethena GmbH. This shift was reportedly carried out on the clients’ request.
According to Ethena Labs, this strategic extraction from German jurisdiction and the wider EU regulatory agenda MiCAR seems to mark a notable trend of moving toward more favorable jurisdictions to carry out operations concerning digital assets. This decision also highlights the advancing dynamics between centrally controlled cryptocurrency entities as well as the latest regulatory regimes.
