Nuri will be maintaining cryptocurrency trading services until November’s end. However, users are encouraged to withdraw all assets before the deadline of mid-December. This German cryptocurrency bank told its 500,000 users to withdraw funds from their accounts. That is because the firm is preparing to shut down. It will liquidate the business. Thus marking it as another victim of the bear market of 2022.
In August, it first reported issues related to liquidity. It was after declaring that it filed for insolvency in the middle of economic crypto winter strains. It said that business would be, as usual, continued as it worked on a plan of restructuring and securing a buyout. Yet an acquisition still needs to materialize.
The current situation
Kristina Mayer, CEO of Nuri, wrote in a blog post on October 18 that it cannot continue operating despite the company’s best efforts.
Nuri is encouraging customers to withdraw all of their assets before the December 18 deadline, in contrast to Celsius, a bankrupt crypto lender, which blocked user withdrawals before things went south.
Until the past date, customers have access. They will be capable of withdrawing every fund. The insolvency of Nuri does not affect the assets in your Nuri account. The post states that trading will be possible until November 30 this year.
According to Mayer, this year, all challenges have become insurmountable. It is because of the previous months’ challenging economic and political environment. It kept them from raising new funds or finding an acquirer. He said that the bankruptcy of one of their most important business partners significantly exacerbated the situation. It sent them over the edge. In August this year, Nuri was forced to file for temporary insolvency.
Although Mayer did not specify which insolvent business partner it had, Celsius appears to be the most likely candidate because it had partnered with Nuri to provide its customers with Bitcoin interest accounts. When Celsius entered bankruptcy, these accounts were terminated.
Mayer also mentioned that the company is still enthusiastic about the potential of financial services based on the blockchain.
They continue to have faith in cutting-edge financial technology. They are persuaded that decentralized finance, cryptocurrencies, and blockchain will present opportunities. These will genuinely enhance people’s lives. Nevertheless, financial innovation ought to be safe, understandable, and simple for as many people as possible. So Mayer wrote in the piece.
The trend toward outsourcing also includes platforming core systems and upgrading outdated infrastructure.
Tarabut Gateway’s specialty as an open banking platform is not a bank’s internal mechanics but its connectivity to other banks and third parties.
They make it easier for all banks to share and expose their data. Regardless of whether it is to meet regulations or pursue commercial use cases. It was as per Ocampo. That primarily entails creating the application programming interfaces that banks increasingly use to open banking payments with other banks and FinTechs and enable connectivity.
The case of Tara but Gateway demonstrates that banks outsourcing product development is growing in the Middle East. So it is by gaining bank clients in its native Bahrain, Saudi Arabia, and the UAE.
It demonstrates that a new generation of third-party developers is not contractors. Tarabut Gateway manages the merchant side of the open banking platform. It makes it possible for the brand-new interbank payment rails. It is to get used in business transactions.
The banks of the region are just some of the ones enlisting the services. It is a company in the Middle East and North Africa. It is to support product development and innovation.
Infineon declared a new partnership. It was with the Commercial Bank of Dubai. It is to ease payments for digital businesses. In addition, it will encourage embedded financial services adoption in the United Arab Emirates.
Infineon does more than assist banks in developing new digital products. Outsourced product development is an ongoing relationship. It is rather than a one-time transaction, as the term Banking-as-a-Service suggests.
So, digitizing financial services is a journey rather than a destination. Moving forward, more productive partnerships will be a must. Is as the thriving FinTech scene in MENA demonstrates.
The collapse of Terra set off a chain of catastrophic events. First, they brought the ecosystem to its knees. After TerraUSD’s de-pegging, 3AC declared its insolvency. Next, Celcius, Zipmex, and BlockFi froze the fund’s withdrawal. Again, it was because they reeled from a financial crisis. Finally, other players in this sector (including the trading website yuan-pay-group.net) got forced to lay off a considerable chunk of their staff.