The German-based Neobank N26 is expanding its crypto trading footprint in various European countries. But the bank has some imminent challenges.
As the crypto market rebounds, the development around the ecosystem kicks in. The German Neobank N26 announced the expansion of its crypto trading services in several European countries, including Germany, Switzerland, Ireland, Belgium, and Portugal.
In October last year, N26 first offered crypto trading services in Austria in partnership with BitPanda.
N26 Broadens its Crypto Trading Services
The neobank aims to simplify crypto trading by eliminating confusion, waiting time, and the need to download a new app. The users will be able to trade crypto directly from their bank account.
N26 will allow users to trade 200 coins with 1.5% fees for Bitcoin and 2.5% for altcoins. The subscriber of its Metal account service, which costs €17 per month, will get a discount on the trading fees. The metal subscribers can trade Bitcoin at a 1% fee, and altcoins for 2% fees for trading amounts up to €5,000 per month.
However, the neobank will not provide the users with control of private keys. N26 clarified that it would be a closed system, wherein users would not have their own keys or be able to transfer crypto to other accounts. Some users criticized the German bank due to this.
Imminent Challenges for N26
Along with expanding its product offerings, the bank is also experiencing shake-ups this month. Jan Kemper, the COO, and CFO of N26, announced on LinkedIn that he would be leaving the company by the end of January to focus on other ventures.
According to Reuters, the Berlin-based bank has also been cited by regulators for lapses in its anti-money laundering controls.
Banks Providing Crypto Services Despite Regulatory Challenges
The high demand from clients has led not only N26 but also other banks globally to expand to crypto services. In November last year, The Union Bank of the Philippines partnered with METACO, a Swiss cryptocurrency firm, to offer crypto trading services in Bitcoin and Ethereum. It is the largest bank in the Philippines.
In September, Singapore’s largest bank – DBS bank, opened up its crypto trading services to accredited clients with at least $246,000 in investable assets.
American banks are also providing their clients with crypto-related services. In April 2022, Goldman Sachs created a Bitcoin-backed cash loan product. Bank of New York Mellon, the world’s biggest custody bank, announced in October that they would provide custody service for cryptocurrency assets.
Due to the crypto exposure of such US-based banks, the regulators issued a joint statement to highlight ‘key risks’ associated with crypto-assets. Furthermore, the statement said that US Regulatory bodies would closely monitor banks with crypto exposure.
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