German neobank N26 to launch crypto trading later this year
German neobank N26, one of Europe’s largest fintech companies valued at $ 9 billion, is finally ready to tackle crypto and stock trading after struggling for global expansion.
Although it was one of the early players in the fintech boom in Europe, the global ambitions of Berlin-based online banking N26 have resulted in a setback in its diversification of services, said the co-founder and co-founder. N26 CEO Max Tayenthal in an interview with the Financial Times.
After leaving two critical fintech markets – the US and UK – N26 plans to “focus more on its European business” by introducing new products and services to its 7 million customers.
According to Tayenthal, who admitted that online banking needs to expand its product universe, N26 aims to launch a crypto trading business in 2022, followed by stock brokerage instead of “putting flags in new markets.”
The N26 mobile app currently does not offer crypto functionality, and features for the next product related to crypto trading have yet to be revealed. Cointelegraph has contacted N26 for more information, and this article will be updated pending further details.
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N26 announced its exit from the US market in November when it launched additional financial products and services for its European customers. “N26 will focus its strategy on expanding its digital banking experience into new verticals to include investment products over the coming year,” the announcement said.
The company was hit by several restrictions from the German supervisory authority, the Federal Financial Supervisory Authority, or BaFin, in May 2021, in part due to the lack of anti-money laundering controls. BaFin has ruled that N26, which accepted an average of 170,000 new customers per month last year, cannot onboard more than 50,000 customers per month.
Describing BaFin’s new customer cap as a massive restriction on investor-funded growth fintech, Tayenthal said he expects the condition to be lifted by the end of summer 2022.