Bitcoin, Ether Trading To Begin In Belgium Via KBC Bank, Under MiCA

• KBC is the first Belgian bank to offer retail crypto trading by following the European Union’s Markets in Crypto-Assets Regulation. 
• The bank recently submitted its service provider notification to regulators
• Under this development, retail customers will gain direct access to trade Bitcoin and Ether starting February 16.

Belgium’s financial sector just took a massive step. KBC Bank (one of the largest lenders in the country) announced it will soon offer crypto trading to retail investors. 

This stands as a major change in how traditional banks view digital assets like Bitcoin and Ether within Belgium.

KBC Offers Crypto Trading Under New EU Rules

Starting February 16, KBC customers will be able to buy and sell digital assets in a fully regulated setting. This launch comes after the implementation of the European Union’s Markets in Crypto-Assets Regulation (better known as MiCA). 

While other European banks have moved relatively more slowly, KBC chose to lead the market. The bank submitted a formal notification as a crypto asset service provider to Belgian authorities. 

This makes sure that every transaction happens under the eye of the Financial Services and Markets Authority, as well as the National Bank of Belgium.

Erik Luts, the Chief Innovation Officer at KBC Group, shared that this move makes innovation concrete. 

The bank wants to provide a safe space for investors who are curious about digital assets. With this being said, by offering crypto trading through a familiar medium, they are attempting to remove many of the barriers that once scared off average users. 

Under this new system, investors no longer need to navigate offshore exchanges. Instead, they can manage their wealth alongside their stocks and bonds.

How the Bolero Platform Changes Crypto Trading

The bank decided to host these new services on Bolero, its popular online investment platform. 

This means that users will be able to keep all their investments in one place. However, this is not just a copy of a standard exchange. KBC is still using a specific “execution-only” model. 

This means that the bank will not give investment advice on which coins to buy and users must make their own choices.

However, to protect people, the bank requires every user to pass a knowledge test first. 

This test checks if the investor truly understands the risks involved with crypto. The platform also uses a “closed-loop” model for its crypto trading features. 

This means that customers can buy Bitcoin, but cannot send it to a private wallet or another exchange. This was put in place to stop many common types of fraud and phishing. 

The Challenges of Belgian Crypto Regulation

Even though KBC is moving forward, the regulatory environment in Belgium is still a bit messy. The country only recently adopted its national laws to implement MiCA, and the new rules officially took effect on January 3. 

Because of this late start, the European Securities and Markets Authority register does not yet show any official Belgian licenses. In other words, KBC is essentially the first to cross the finish line in a race that just started.

In all, this news is a game-changer for the average Belgian investor. For a long time, buying Bitcoin meant dealing with unregulated platforms. Now, the second-largest bank in the country is giving its blessing to the asset class. 

This adds a layer of trust that was previously missing, and users benefit from bank-grade security and clear tax reporting.

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