Key Takeaways
- KBC Group will become the first Belgian bank to offer its customers access to cryptocurrency investments.
- The Belgian bank plans to launch crypto asset trading on its Bolero platform.
- KBC Group has now joined other European banking institutions that are already active in the crypto market.
Belgian banking giant KBC Group plans to offer its retail clients the opportunity to invest in cryptocurrencies.
According to local media, a move set to launch this fall will allow retail customers to trade Bitcoin (BTC) and Ether (ETH) via Bolero, its investment platform, in the coming months. With this move, the giant financial services company is taking the lead among Belgian banks, which have previously been hesitant to adopt decentralized digital assets.
Focus on Offering Investor Education
KBC Group becomes the first central Belgian bank to announce concrete plans to offer crypto services to retail customers. Until now, Belgians who wished to invest in such assets had to turn to foreign platforms that also offer cryptocurrency services. Moreover, others had to use global trading platforms such as Coinbase and Binance, or utilize the services of neo-banks like Revolut and Bunq.
According to local media, KCB Group was in the process of getting regulatory approval to operate as a crypto asset service provider. The bank stated that it would focus on providing investor education, security, and regulatory compliance. Pundits expect financial authorities to greenlight it by the fall, according to another local media house.
KBC Group is entering the crypto space amid the enforcement of the European Union’s Markets in Crypto-Assets (MiCA) law, which aims to establish uniform rules for the industry across the bloc while improving oversight, including compliance with anti-money laundering requirements.
Growing Investor Interest in Crypto
The KBC Group’s decision to facilitate crypto trading for its retail clients aims to address growing investor interest in cryptocurrencies in the Benelux countries, particularly among young Belgians, as noted by the media. According to a recent survey conducted by the country’s Financial Services and Markets Authority (FSMA), at least 43% of Belgian investors under the age of 29 have already purchased cryptocurrency. The share of such investors grows to 45% in the age segment under 30.
The KBC Group is currently Belgium’s second-largest bank, providing services to private clients and small to medium-sized enterprises in Belgium. The bank is also in several developing markets in Central and Eastern Europe, including Bulgaria, the Czech Republic, Hungary, and Slovakia. Banks within the Central and Eastern European region are currently witnessing a growing interest in crypto investment opportunities. As a result, Poland’s largest insurance firm, PZU, announced in May a Bitcoin fund offering that will provide Polish investors with exposure to the leading cryptocurrency under EU regulations.
Conclusion
The move by KBC Group to join the crypto ranks comes amid the EU’s new Markets in Crypto-Assets regulation, which sets uniform standards for crypto service providers across the bloc. The aim is to level the playing field and enhance oversight, particularly in the area of anti-money laundering compliance.
Frequently Asked Questions
Is cryptocurrency allowed in Belgium?
In Belgium, there are no specific rules dedicated to cryptocurrencies. However, the lack of clear regulations is not indicative of a lack of tax rules! The general criteria from the Income Tax Code will be applied to crypto assets.
Crypto regulation legacy in Belgium
In 2017, Belgian law extended the requirements of the EU’s Fifth Anti-Money Laundering Directive to cover cryptoassets. Further, in 2022, a Royal Decree expanded supervision requirements to cryptocurrency exchange and custodian services.
Is crypto taxed in Belgium?
You don’t pay taxes on owning cryptocurrencies or when you use crypto as a payment method. Additionally, amateur traders who invest in crypto as a hobby or for long-term investment purposes, in principle, don’t pay taxes on their crypto holdings.
