N26, a German online neobank, has announced that it will be getting into cryptocurrency trading this year. The announcement was made by Max Tayenthal, co-founder and CEO of the company, who questioned whether focusing on cryptocurrency instead of going global might have been a better idea. The company has closed its UK operations and is now leaving the US
N26 will offer cryptocurrency services
N26, a German online bank, has announced that it will be rolling out cryptocurrency trading services for its customers this year. The bank’s co-founder and one of its current CEOs, Max Tayenthal, recently announced the need to be a universal platform. Tayenthal also touched on oversights the bank may have made by ignoring cryptocurrencies last year.
The executive told the Financial Times:
Should we have built trading and crypto instead of launching in the US? In hindsight, that might have been a smart idea.
N26, a bank with over 7 million customers as of January 2021, made the decision to expand into the UK and US before launching these services. However, they already left the UK last year and are currently closing their US operations. do instead of putting flags on new markets.
Although the bank was successful, valued at 7.8 billion euros (~$8.8 billion) last year, it has faced regulatory pressure from Bafin, the German fintech regulator. According to the institution, the company had AML compliance issues.
This is why the German regulator capped the number of customers N26 could admit each month. Currently, only 50,000 customers can log in to take advantage of the features and services offered by the company. Bafin has appointed two representatives to monitor and report on the company’s progress. Tayenthal was confident that N26 could work with regulators to lift this cap which affects the company’s growth. The company signed up an average of 170,000 customers per month last year before the cap was applied. On this, Tayenthal said:
We have a plan. We understand what needs to be done and we are able to execute [it].
Bitcoin.com News further reported recently that other traditional banks may also offer cryptocurrency services to their customers starting this year.
What do you think of N26’s decision to include cryptocurrency trading in the services it offers? Tell us in the comments section below.
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