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After theWirecard malicious gossip , Germany ’s financial regulator BaFin bulge to appear more closely at youthful fintech startup that wanted to develop at a speedy pace — it ’s better to be safe than sorry .
In particular , N26 , a Berlin - found banking startup that raisedhundreds of millions of eurosand quickly became a unicorn , has had a complicated relationship with BaFin for the past few years . The regulator imposed a hood on young signups as a authority to force the inauguration to ameliorate its anti - money laundering processes .
This week , N26 announced that BaFin is going to lift the development restriction starting on June 1 , 2024 . The cap was to begin with set in 2021 at 50,000 novel customers per month . At the end of 2023 , it was increase more or less to 60,000 customers per month .
Last calendar week , as part of the conclusion of this superintendence catamenia , BaFinfinedN26 € 9.2 million ( around $ 10 million at today ’s exchange charge per unit ) for defect in reporting suspicious activity that occurred in 2022 . N26 ask this fine as it set aside provisions in its 2022 fiscal statements . According to the fellowship , it has also seat € 100 million to improve its compliance squad and operation since 2022 .
“ We are pleased about the trust of our regulators and will preserve our snug interchange in the futurity . In recent years , we have been able-bodied to make significant progress in preventing and combating money laundering and financial crime , ” N26 atomic number 27 - beginner and CEO Valentin Stalf said in a statement .
As this limitation badly hampered N26 ’s growth , the company adjusted its strategy to focalize on its survive customers . In Spain and Germany , N26 offers saving account . In some markets , drug user can also get a loanword of up to € 25,000 from the app .
The company has addedcrypto and inventory tradingtoo , in partnership with Bitpanda and Upvest , severally . you may even sign up to insurance policy products from the app . All of these addition are plan to increase the average taxation per user .
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In 2023 , N26 report a release of € 100 million , but things should be better this year thanks to higher interest rate , new tax income streams and the terminal of the signup detonator . The company said it have a bun in the oven to strain “ monthly profitability ” at some point during the second one-half of 2024 .
