Belgium’s KBC becomes first bank in the country to offer Bitcoin trading to individual investors

Belgium’s KBC becomes first bank in the country to offer Bitcoin trading to individual investors

KBC Group, Belgium’s second-largest bank, plans to become the first bank in Belgium to allow retail customers to buy and sell cryptocurrencies.

Starting the week of February 16th, retail investors will be able to trade Bitcoin through Bolero, KBC’s online investment platform.

The service will operate within a regulated framework under the European Union’s Cryptoassets Market Regulation (MiCAR), making KBC the first Belgian bank to meet the requirements for offering cryptoassets services.

KBC said it has submitted a complete notification regarding its Crypto Asset Service Provider (CASP) to the relevant supervisory authorities, paving the way for its launch.

The bank positioned the move as a response to growing demand from retail investors for regulated access to cryptocurrencies, while highlighting the risks associated with the asset class.

“By providing the opportunity to buy and sell cryptocurrencies within a regulated framework, we are making innovation tangible and accessible,” said Eric Lutz, Chief Innovation Officer at KBC Group. “At the same time, we are proving that KBC is ready to take on the role of an innovator in a market where new entrants are rapidly evolving.”

KBC execution-only model

The launch will initially be limited to Bitcoin and Ether and will follow an execution-only model. Bolero customers make their own investment decisions and do not receive individual investment advice.

The bank said that before customers are allowed to trade in cryptocurrencies, they must pass a knowledge and experience test to assess their understanding of risks such as price fluctuations and the possibility of total loss.

KBC and Bolero employ a so-called “closed-loop” model, which aims to reduce the risk of fraud and money laundering. Customers will only be able to buy and sell cryptocurrencies within the Bolero platform and will not be able to transfer assets to or from external wallets or exchanges.

The bank also provides custody services, so customers no longer have to manage their private keys themselves.

According to KBC, this movement is partly driven by demographic trends. According to a survey cited by the bank, around 45% of Belgians in their 30s have already invested in cryptocurrencies.

Bolero’s customer base skews relatively young, with around 60% under the age of 40, and “Bitcoin” ranks as one of the most searched terms on the platform.

Bolero CEO Celine Pfister said the platform aims to introduce cryptocurrencies “in an accessible way” while providing investors with sufficient information. At launch, educational materials will be available through Bolero Academy.

In a similar move, Germany’s second-largest lender DZ Bank won approval under the EU’s crypto market regulation early last year, allowing it to launch a retail cryptocurrency trading platform across its network of cooperative banks in the country.

The BaFin-approved ‘meinKrypto’ platform will enable Volksbanken and Raiffeisenbanken customers to trade Bitcoin and other cryptocurrencies directly within their existing banking apps, subject to notifications from their respective banks.

This article, Belgium’s KBC Becomes First Bank in the Country to Offer Bitcoin Trading to Retail Investors, originally appeared in Bitcoin Magazine and was written by Micah Zimmerman.