German-based neobank N26 is expanding its crypto trading footprint in various European countries. But there are some imminent challenges before the bank.
As soon as the crypto market returns, the development around the ecosystem begins. German neobank N26 announced the expansion of its crypto trading services to several European countries, including Germany, Switzerland, Ireland, Belgium and Portugal.
In October last year, N26 offered crypto trading services in Austria for the first time in partnership with BitPanda.
N26 Expands Its Crypto Trading Services
NeoBank aims to make crypto trading easier by eliminating confusion, waiting times and the need to download a new app. Users will be able to trade crypto directly from their bank account.
N26 will allow users to trade up to 200 coins with a 1.5% fee for bitcoin and 2.5% for altcoins. Customers of its Metal Account service, which costs €17 per month, will receive a discount on trading fees. Metal customers can trade bitcoin for a 1% fee, and altcoins for a 2% fee for trading amounts of up to €5,000 per month.
However, Neobank will not provide users with control of the private keys. N26 clarified that it will be a closed system, with users not having their own keys or being able to transfer crypto to other accounts. Some users criticized the German bank for this.
Imminent Challenges for N26
Along with expanding its product offerings, the bank is also experiencing a shake-up this month. n26’s COO and CFO Jen Kemper announced on LinkedIn that she will 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 lacking its money-laundering controls.
Banks Offering Crypto Services Despite Regulatory Challenges
The high demand from customers has prompted not only N26 but also other banks globally to expand crypto services. In November last year, Union Bank of the Philippines partnered with Swiss cryptocurrency firm Metaco 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 its crypto trading services to accredited customers with at least $246,000 in investable assets.
American banks are also providing crypto-related services to their customers. In April 2022, Goldman Sachs created a bitcoin-backed cash loan product. Bank of New York Mellon, the world’s largest custody bank, announced in October that they will offer custody services for crypto assets.
Due to the crypto exposure of such US-based banks, the regulators issued a joint statement to highlight the ‘key risks’ associated with crypto-assets. Furthermore, the statement added that US regulatory bodies will closely monitor banks with crypto exposure.
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BeInCrypto has reached out to the company or the person involved in the story for an official statement regarding the recent development, but has yet to hear back.