German online neobank N26 has announced that it will enter the cryptocurrency trading business this year. The announcement was made by the company’s co-founder and CEO Max Tayenthal, who pondered whether it might be a better idea to focus on cryptocurrencies rather than going global.The company closed operations in the UK and is now exiting the US
N26 provides cryptocurrency services
German online bank N26 has announced that it will launch a cryptocurrency trading service for its customers this year. The bank’s co-founder and one of its current CEOs, Max Tayenthal, recently announced the need for a universal platform. Tayenthal also touched on the bank’s possible oversight in ignoring cryptocurrencies last year.
administration staff Tell Financial Times:
Should we build trading and crypto instead of launching in the US? In hindsight, this might have been a smart idea.
N26, a family with more than 7 million customers As of January 2021, it was decided to expand to the UK and US before launching these services. However, they exited the UK last year and are currently closing operations in the US. Tayenthal said it had something to do with the policy shift, as he noted the bank was “too thin to expand” and had “a lot of things to deal with” to do instead of flagging in new markets. “
Despite the bank’s success, valued at 7.8 billion euros ($8.8 billion) last year, it has been facing regulatory pressure from Germany’s fintech regulator Bafin. According to the agency, the company had issues with anti-money laundering compliance.
That’s why German regulators put a cap on the number of customers the N26 can take in each month. Currently, only 50K customers can log in to enjoy the features and services provided by the company. Bafin assigned two representatives to track the company’s progress and report back. Tayenthal believes N26 can work with regulators to remove caps that affect the company’s growth. Last year, before the cap was implemented, the company signed up an average of 170,000 customers per month. In this regard, Taintar declared:
We have a plan.We understand what needs to be done and can execute [it].
Bitcoin.com News further recently reported that other traditional banks can also supply It started offering cryptocurrency services to its clients this year.
What do you think of N26’s move to incorporate cryptocurrency trading into the services it offers? Let us know in the comments section below.
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