- N26, a German-based online banking giant, is disappointed by its ignorance of the growing crypto market.
- As a turnaround, the company plans to launch a cryptocurrency trading and stockbroking business within the year.
N26, a 7.8 billion euro (about $ 8.8 billion) fintech company, is now part of the batch that regrets ignoring the crypto market for too long. Co-founder and co-CEO Max Tayenthal says the German company has placed too much emphasis on “raising flags” around the world, rather than investing in the cryptocurrency boom.
N26 has established itself as an online lending company with great prospects over the past decade. It is now one of the most valuable fintech companies in Europe, with investors of Valar Ventures status, Peter Thiel, and Li Ka-Shing. N26 has grown its roots, now serving 7 million clients in 24 countries. Despite these significant figures, the company has blamed itself for not offering cryptocurrency and equity trading services.
Should we create commerce and cryptocurrencies instead of launching them in the United States? Looking back it may have been a clever idea, «Tayenthal told the FT in an interview, adding:» We were extremely distracted. «
The country recently withdrew its US operations, citing the need to redirect its focus to its core business in Europe.
N26 prepare for the cryptocurrency industry
We regret that the 2022 resolution comes to launch cryptocurrency trading and stockbroking business. Here, the company may need to further reorganize its regulatory compliance measures, as regulators seek strict oversight in the cryptocurrency industry.
The company already had its regulatory problems last year with German watcher BaFin about various shortcomings, such as poor anti-money laundering controls. BaFin continued to set a limit of 50,000 when N26 had an average of 170,000 new customers per month. According to the regulator, this restriction will not be removed until the company has demonstrated its compliance and risk mitigation capability. In addition, the BaFin appointed, in an unusual measure, two special representatives to monitor the improvements of the N26.
For this reason, Tayenthal has stated that the company will remove the full cap by the end of the summer. He says N26 has been working to «hugely» raise the bar of its capabilities against financial crime over the past year. However, he acknowledges that there is still work to be done on «certain aspects.»
In addition, Tayenthal notes that investors were fully aware of these restrictions prior to the firm ‘s most recent funding round. N26 rose € 780 million last year, allowing it to reach its current valuation and catch up with Commerzbank, which has € 541 billion in assets.
The company is currently preparing to go public at the end of the year. However, the co-CEO says plans may change during the year.