N26, an online German neobank has said it would enter the crypto trading industry this year. Max Tayenthal was the co-founder of N26 and is also a CEO. He thought it might have been better to focus on cryptocurrency than going global. It has now closed its operations in the U.K.
Cryptocurrency Services Available at N26
N26, an online German bank has said it will offer crypto trading services for customers next year. Max Tayenthal (co-founder and current CEO of N26) made this announcement, expressing his desire to create a platform that is universal. Tayenthal talked also about any mistakes the bank made by not paying more attention to cryptocurrency last year.
Financial Times was informed by the executive:
What if we had built crypto and trading instead of going to the US for a launch? This might have proved to be a good idea in retrospect.
N26 was a bank that had more than 7,000,000 customers in January 2021. They decided to open branches in the U.K. as well as the U.S. to launch these services. However, they have already exited the U.K. last year, and are currently closing operations in the U.S. Tayenthal stated this has to do with a policy shift after he noticed the bank was “spreading too thinly,” and that there were “so many things to do instead of putting flags in new markets.”
While the bank has been successful, being valued at €7.8 billion (~$8.8 billion) last year, it has been facing regulatory pressure from Bafin, the German fintech regulator. According to the institution the company was having problems complying with AML regulations.
The German regulator set a limit on how many customers N26 can admit per month. Only 50K people are currently allowed to log in and use the features and services offered by N26. Bafin designated two employees to report on the progress of N26 and keep it updated. Tayenthal felt confident that N26 can work with regulators and lift the cap that was limiting the company’s growth. Before the cap was imposed, 170,000 clients were signed up per month by the company. Tayenthal said:
We know what we need to do and have a plan. The plan is clear and can be executed. [it].
Bitcoin.com News also reported recenty that some traditional banks might offer crypto services starting in the new year.
What do you think about N26’s move to include cryptocurrency trading in the services it offers? Leave your comments below.
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