Belgium's second-largest bank, KBC, has taken a step that essentially opens a small door for traditional finance to enter the crypto space.

Let's look at the core setup: relying on the EU MiCAR regulatory framework, KBC has launched trading services for BTC and ETH. The model is very clear—only execution, maintaining a closed loop, and providing custody. Compliance goes without saying, but the constraints are indeed tight.

From an industry perspective, this is a signal that crypto assets are gradually being "mainstream recognized." The MiCAR framework itself is an exploration by the EU to regulate the crypto market. The fact that banks dare to get involved under this framework essentially indicates what? Traditional finance has already started to treat crypto as a viable business. What does this mean? Ordinary people outside the circle will find it easier to access crypto assets—after all, people who trust banks tend to trust them more than exchanges.

However, one key point must be understood here: what does "closed loop" mean? It means that the BTC or ETH you buy at KBC cannot be transferred out through the bank's account system. In other words, they are packaged by the bank as "digital wealth management products," not assets you truly own on the blockchain. This is different from free transfers and the truly decentralized crypto world. Financial institutions are essentially "bringing crypto assets into their fold," fitting them into the traditional financial framework. While risks are managed, the most valuable aspect of crypto—the "disintermediation"—disappears.

How will the market react? In the short term, the "compliance" narrative around BTC and ETH can attract attention, especially in Europe, where there may be a wave of sentiment follow-up. But in the long run, this "censored" service model, at its core, is just traditional finance using regulatory clothing to attract users, not a genuine embrace of the core logic of crypto.

For players already active on the chain, this kind of banking channel isn't very attractive—we want the freedom that comes with on-chain assets. But for newcomers who have never touched crypto, this could be a relatively gentle way to get started. Just remember to think clearly: do you want true ownership of crypto assets, or are you just getting a bank-packaged digital wealth management tool?