German neobank N26 preferred cryptocurrencies to global expansion and leaves the US and UK markets.
N26 is one of the largest European fintech companies, valued at over $ 9 billion. Until recently, Neobank’s ambitions were focused on expanding overseas – in the US and UK. However, in November 2021, N26 announced that it was leaving both markets and now plans to focus on its intra-European business. Namely – to expand the list of services and their quality for 7 million clients.
According to the co-founder of Neobank Max Taienthal, instead of being inflamed in other regions, which takes a lot of effort and money, N26 will strengthen its position in Europe. Including through investments in cryptocurrencies and brokerage activities. The composition and nature of cryptocurrency services has not yet been disclosed.
It is noteworthy that before that, N26 almost did not touch on the topic of cryptocurrencies. Last May, the company had problems with BaFin (Germany’s financial supervisor). N26 had little control over its money laundering fraud.
BaFin ruled that the N26, despite growing 170,000 monthly customers, is barely able to serve more than 50,000 people. Therefore, a restriction was imposed on neobank – a ceiling for new customers, which, according to Tayental, became a serious obstacle to the company’s growth. The bank plans to settle issues with BaFin in the second half of this year.