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N26 feels it could've 'built trading and crypto instead of launching in the US'

Updated: Jul 25, 2024
Published: Jan 10, 2022
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N26, a German online bank with a vast customer base, is ready to launch its "cryptocurrencies trading business this year and an equities brokerage after that," as per a report from the Financial Times. The co-founder and co-chief executive Max Tayenthal regrets not expanding in the crypto sector. 

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N26 co-founder has regrets

Tayenthal said in his interview with the Financial Times that "we were spreading ourselves extremely thinly" and that there are "so many things we can work on instead of putting flags in new markets." It seems that N26 is regretting its widespread expansion in over 24 countries and not focusing on providing crypto-related services. 
"Should we have built trading and crypto instead of launching in the US? In hindsight, it might have been a smart idea," said Tayenthal, the co-founder of N26. 
The rapid expansion in the US might've seemed costly for the firm as it failed to take advantage of the crypto boom. The firm is now closing operations in the United States and launching an equities trading platform followed by a crypto trading business. 
"We really want to expand our product universe, and we have to," said Tayenthal.

BaFin's restrictions

Missing out the crypto boom wasn't the only thing that N26 regrets. The German financial regulator, BaFin, capped the number of new users that the platform can register in a month to 50,000. A year ago, the platform had 170,000 new clients each year. 

As per BaFin, the restriction on the monthly clients can only be lifted once N26 has "a proper business organization and [mitigated] risks to the institution's operational resilience," in particular "shortcomings in risk management with regard to IT and outsourcing management."

The co-founder of N26 is confident that the setback from BaFin will be recovered after the restriction is removed. He believes that the cap will be removed by the summer.

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