Ethena Labs officially closes its German and European operations after a previous rejection of the request for Mica. During the last month, the company is preparing to withdraw from this market.
Although the exit was planned, ENA reacted in particular, the Altcoin falling by more than 7% after today’s announcement.
Ethena Labs failed Mica’s effort
Ethena Labs was faced with continuous regulatory difficulties in Europe. At the end of March, the German authorities rejected the Statehena request for compliance with Mica.
At the time, the company suggested that it was a minor setback and that it would focus on other markets. Today, he announced that his German branch ends completely.
“We agreed with Bafin to finish all the activities of Ethena GmbH and we will no longer continue to authorization of Thumber in Germany. All the white lists … Users interacting before with Ethena GmbH have at their request were on board with Ethena (BVI) Limited instead.
The press release also said that Ethena GmbH, the German branch, “has not carried out any mint or redemption” since the regulator’s mica decision.
More specifically, regulators have prohibited all sales of the stablecoin USDE, putting serious restrictions on the company. In other words, this result is fair. Ethena (BVI) Limited has taken up users of the German branch.
The network governance token, ENA, has seen significant price oscillations around its Mica efforts. At the beginning of March, while Ethena Labs would have been on the right track to receive regulatory approval, ENA broke out more than several months and almost reached $ 2.5 billion in brand ceiling.
However, since rejection, ENA has seen a continuous downward pressure, which has been exacerbated by macroeconomic conditions through the market. Today’s announcement has resulted in a new drop.
Mica, the new regulation of the stable of the European Union, presented difficulties to several companies in addition to Ethena. For example, Tether’s stablecoins were delimited by EU’s exchanges when Mica has entered into force, which caused serious changes to its activities.
Several other transmitters have run to fill the lake left by these companies by obtaining compliance. More recently, the major centralized exchanges such as Crypto.com and OKX have obtained the license, further strengthening their understanding on the EU market.
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