Cryptocurrency Community Debates Fallout from Closure of Major American Banks

The closure of three major American banks that serve cryptocurrency firms, including Silicon Valley Bank and Signature Bank, has sparked debate within the cryptocurrency community. The closure of Silicon Valley Bank, which held over $3.3 billion of USD Coin issuer Circle's $40 billion reserves, has caused particular concern. As a result, the cryptocurrency ecosystem is now exploring neobank services and other options to bridge the gaps exposed by the latest mainstream banking failure. (Read More)

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Coinbase CEO ponders banking features after Silicon Valley Bank crisis

The wider cryptocurrency community continues to debate the ongoing fallout following the closure of three major American banks, with calls for neobank services for the industry on the cards. Silicon Valley Bank (SVB), which has traditionally served startups across a number of innovation sector industries, was shuttered by California’s Department of Financial Protection and Innovation [...]

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Neobank N26 Exapnds Crypto Trading Product to 5 New Countries

<p> N26, the German neobank with headquarters in Berlin, has expanded its recently introduced cryptocurrency trading product to five more European countries. N26 Crypto is now available for traders from Belgium, Germany, Ireland, Portugal and Switzerland.</p><p class="MsoNormal">N26 Crypto Opens for New Markets</p><p class="MsoNormal">Challenger bank <a href="https://www.financemagnates.com/cryptocurrency/neobank-n26-launches-crypto-trading-product/" target="_blank" rel="follow">unveiled a new service</a> giving access to trading on more than 200 digital assets for the first time in October 2022. Initially, it was reserved only for investors from Austria, but the company promised to implement more countries in the near future. After three months, it fulfilled the pledge and allowed consumers from five more jurisdictions to access its crypto product.</p><p class="MsoNormal">N26 reminds its clients that N26 Crypto may not be available to everyone right away. The product has been phased in since 17 January 2023, with full integration expected to be completed within weeks.</p><p class="MsoNormal">"The N26 banking experience has always been built around the customers' needs, with features that make money management easy. With N26 Crypto we have created a simple, intuitive product that integrates seamlessly into N26's fully-regulated banking experience where one's bank balance, savings, and investment portfolio sit side by side – with <a href="https://www.financemagnates.com/terms/c/cryptocurrencies/" target="_blank" id="b091101e-6e02-4b36-aa0e-7c972dfdd6ed_1" class="terms__main-term">cryptocurrencies</a> being the first asset class we intend to offer," Gilles BianRosa, the Chief Product Officer at N26, commented in the press release.</p><p class="MsoNormal">According to the statement, N26 Crypto offers one of the widest selections of cryptocurrency assets among competing banking applications. The product was developed in cooperation with <a href="https://www.financemagnates.com/tag/bitpanda/" target="_blank" rel="follow">Bitpanda Asset Management GmbH</a>, which recently launched in Austria and is responsible for trades execution and custodian services.</p><p class="MsoNormal">N26 Crypto charges a 1.5% commission on Bitcoin transactions and 2.5% on other cryptocurrencies. N26 Metal customers can expect commissions reduced to 1% and 2%, respectively.</p><p>Check out the latest FMLS22 session on crypto market trends and structure.</p><p class="MsoNormal">10 Years of N26 Expansion</p><p class="MsoNormal">N26 was founded as a mobile bank in 2013 by Valentin Stalf and Maximilian Tayenthal. After launching the initial product in early 2015, the company was able to obtain eight million customers in more than twenty different markets.</p><p class="MsoNormal">Currently, N26 employs 1,500 people working from 10 locations. Although most are located in Europe (Amsterdam, Berlin or Madrid), neobank leads overseas branches in New York and São Paulo.</p><p class="MsoNormal">N26 has raised $1.8 billion from popular venture capital firms, including Third Point Ventures and Coatue Management LLC. The company is valued at more than $9 billion.</p><p class="MsoNormal">N26 Came Late for the Crypto Game?</p><p class="MsoNormal">While N26 claims to have one of the broadest cryptocurrency offerings among its competitors, it is undoubtedly a latecomer to the digital assets space. Companies such as <a href="https://www.financemagnates.com/fintech/news/revolut-expands-crypto-offering-with-11-trendy-tokens/" target="_blank" rel="follow">Revolut and PayPal completed their cryptocurrency offerings long ago</a>. Even more traditional payment companies, such as Visa and Mastercard have <a href="https://www.financemagnates.com/cryptocurrency/news/mastercard-set-to-offer-cryptocurrency-services/" target="_blank" rel="follow">actively engaged in the Web3 industry</a>.</p><p class="MsoNormal">However, the timing of the entry might be more than punctual. Cryptocurrencies seem to have put a very weak 2022 behind them and are entering 2023 with a more pronounced rebound. <a href="https://www.financemagnates.com/terms/b/bitcoin/" target="_blank" id="261088a9-0f41-4202-a73c-31f75ba6bd93_2" class="terms__secondary-term">Bitcoin</a> is up more than 25% in three weeks, and the capitalization of the entire ecosystem is back above the $1 billion mark.</p> This article was written by Damian Chmiel at www.financemagnates.com.

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Neobank N26 Launches Crypto Trading Product

<p> N26, the German neobank headquartered in Berlin, announced on Thursday the launch of a new cryptocurrency trading product dubbed N26 Crypto. Austrian customers will be the first to test new functionalities via the N26 App, while other markets will be gradually added in the upcoming months.</p><p class="MsoNormal">N26 Crypto offers access to almost 200 <a href="https://www.financemagnates.com/terms/c/cryptocurrencies/" target="_blank" id="b091101e-6e02-4b36-aa0e-7c972dfdd6ed_1" class="terms__main-term">cryptocurrencies</a>, including the biggest names in the crypto industry. Company officials have confirmed that the newest release addresses strong local demand; 40% of current neobank clients are interested in crypto assets or are already actively buying and selling cryptos. </p><p class="MsoNormal"><a href="https://www.financemagnates.com/tag/n26/" target="_blank">N26 </a>clients who are not Austrian residents are being asked to be patient, as new jurisdictions and markets will be announced in the next six months.</p><p class="MsoNormal">“The N26 banking experience has always been built around the customers’ needs, with features that make money management easy. With N26 Crypto, we have created a simple, intuitive product that integrates seamlessly into N26’s fully-regulated banking experience where one’s bank balance, savings, and investment portfolio sit side by side – with cryptocurrencies being the first asset class we intend to offer,” Gilles BianRosa, the Chief Product Officer at N26, said.</p><p class="MsoNormal">The cryptocurrency offering was prepared by a partnership with the crypto company, Bitpanda GmbH, which recently opened its new headquarters in Austria. Bitpanda will be responsible for custodian services and trades execution.</p><p class="MsoNormal">Challenger Bank Tries to Catch Up with Bigger Players</p><p class="MsoNormal">Although neobanking companies are commonly associated with new technologies and innovative products, N26 lags behind its competitors, even the more traditional ones, as a latecomer to the recent crypto rush. </p><p class="MsoNormal">Fintech companies like <a href="https://www.financemagnates.com/fintech/news/revolut-expands-crypto-offering-with-11-trendy-tokens/">Revolut</a> and <a href="https://www.financemagnates.com/cryptocurrency/news/paypal-to-allow-exchange-of-cryptos-with-external-wallets/">PayPal</a> added cryptos to their offering a long time ago, while payment giants like <a href="https://www.financemagnates.com/cryptocurrency/news/mastercard-set-to-offer-cryptocurrency-services/">Mastercard</a> and <a href="https://www.financemagnates.com/cryptocurrency/news/visa-to-support-clients-through-crypto-advisory-services/">Visa</a> have also located themselves within the web3 industry.</p><p class="MsoNormal">The timing of N26’s decision to join the cryptocurrency market could have been better. Main assets have been falling for the last 12 months, and year-to-date, losing more than 50%. Bitcoin (BTC), the oldest and the biggest crypto asset, is currently trading at around $19,000, while in October 2021, its price was three times higher.</p><p class="MsoNormal">N26 was founded in 2013 and launched its first product in 2015. Currently, the firm operates in more than 25 markets, servicing five million customers worldwide. <a href="https://www.financemagnates.com/fintech/news/challenger-bank-n26-raises-another-100m-in-series-d-extension/">Since the last funding round</a>, it has retained its valuation of $3.5 billion.</p> This article was written by Damian Chmiel at www.financemagnates.com.

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Crypto-Friendly Revolut under Pressure after UK Regulators Find Audit Flaws

Revolut has been flagged as being at risk of not meeting auditing requirements. (Read More)

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Nordic Neobank Lunar Raises $77M Funding Round, Launching Crypto Trading Platform

Lunar strives to offer more convenient, empathic and engaging banking alternative services to both private and business customers. (Read More)

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Myanmar’s shadow government backs launch of crypto-based bank

Myanmar’s first entirely crypto-based banking institution has announced a soft launch for July 22 — a move that could see the country’s shadow government given greater access to financial services and funding. The Spring Development Bank is named after the Spring Revolution, the opposition movement led by Myanmar’s exiled National Unity Government (NUG) against the [...]

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Bitcoin is beating Warren Buffett’s 'crypto bet' in 2023

Bitcoin's rebound in 2023 has also seen Coinbase stock gaining over 100% year-to-date, boosting Cathie Wood's ARK portfolio.

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Revolut Pulls the Plug on Crypto in US, Citing Regulatory Environment

Revolut, a London-based neobank, plans to wrap up its crypto trading offering to users in the United States by October 3, CoinDesk reported today (Friday). Users have until September 2 to purchase digital assets on the platform, and another one month to sell their crypto holdings.

Revolut to Quit US Crypto Market

According to CoinDesk, the challenger bank blamed the “difficult decision” on the “evolving regulatory environment” in the United States. In recent months, the Securities and Exchange Commission (SEC) has intensified its crackdown on “crypto-asset securities” offered by “unregistered” trading platforms such as Binance and Coinbase.

In the lawsuit against Binance filed in early June, the SEC listed 13 tokens, including Cardano’s ADA, Polygon’s MATIC, and Solana’s SOL, as unregistered securities. The move forced several platforms including Revolut, Robinhood and eToro, to move towards delisting some of the tokens from their platforms.

Revolut, which suspended the purchase of ADA, MATIC and SOL on its platform, initially gave its US users until September 18 to sell their holdings. With the deadline several weeks away, Revolut has decided to instead shut down its entire crypto services in the country.

However, Revolut in a statement shared with CoinDesk noted that its users from other regions are not affected by the decision. It emphasized that the move will impact less than 1% of its crypto customers across the world.

“This decision has not been taken lightly, and we understand the disappointment this may cause,” Revolut stated.

Revolut Grows amidst Challenges

Revolut's planned exit from the US crypto market comes at a time the fintech company, which recently marked its first full year of profit, is enduring blows to its valuations. The firm, which began as a cross-border money transfer platform and subsequently expanded into crypto trading, consumer loans, and pet insurance, is also struggling to secure a banking license in the UK, Finance Magnates reported. Moreover, the bank reportedly lost $20 million to fraudsters due to a fault in its payment systems, according to the Financial Times.

However, despite the challenges, Revolut recently surpassed 30 million users on its platform, "growing almost one million customers per month," according to Nik Storonsky, the company's Co-Founder and CEO.

Last month, the challenger bank added a robo-advisor to its super app for users in the United States. It also rolled out Joints Accounts products in the UK and expanded its financial services to New Zealand.

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