European Banks Advance Crypto Services as MiCA Compliance Framework Takes Shape

German and Belgian Banks Lead European Crypto Integration

Two major European banking institutions are expanding their cryptocurrency and blockchain capabilities, demonstrating how traditional finance is adapting to digital asset regulations under the European Union's Markets in Crypto-Assets Regulation (MiCA).

Commerzbank's innovation unit neosfer has successfully tested a prototype for cross-border payments using stablecoins, while Belgium's KBC Bank is preparing to offer Bitcoin and Ethereum trading to retail customers starting in February ^[1][2].

Commerzbank Tests Lightning-Fast Stablecoin Transfers

The innovation division of Commerzbank has developed a proof-of-concept system for international transfers in collaboration with DLT Finance and payment service provider Tazapay. Initial testing demonstrated that payments from German bank accounts to Asian accounts could be completed in under five minutes—a dramatic improvement over traditional international transfers that typically require several days ^[1].

The prototype utilizes regulated stablecoins including USDC and EURC, which are transferred via the Ethereum and Polygon blockchains. The system was designed to keep blockchain technology invisible to end users, who interact through a familiar banking interface while SEPA payments, on-ramp and off-ramp processes, and blockchain transactions are orchestrated in the background ^[1].

Regulatory compliance was a central focus of the project. According to those involved, all KYC, AML, and Travel Rule requirements were fully automated, demonstrating that stablecoin payments can be bank-ready under EU regulatory frameworks, particularly with regard to MiCA requirements ^[1].

Following successful testing, concrete product applications for bank customers are now being evaluated. Commerzbank, Germany's fourth-largest bank by balance sheet, had already entered cryptocurrency trading in 2024 through a partnership with Crypto Finance, a Deutsche Börse subsidiary, offering corporate clients in Germany access to crypto assets ^[1].

KBC Bank to Launch MiCA-Compliant Crypto Trading

KBC, one of Belgium's largest banks, plans to launch Bitcoin and Ether trading for retail investors on February 16 through its online investment platform Bolero ^[2].

"This will enable self-directed investors in Belgium to invest in cryptocurrencies within a secure and fully regulated environment, a first in Belgium," KBC stated ^[2].

The crypto trading service will operate on the bank's proprietary custodial architecture and is being launched in compliance with MiCA. KBC has submitted a full crypto asset service provider (CASP) notification to the competent authority to offer these services ^[2].

"By offering the opportunity to purchase and sell crypto within a regulated framework, we are making innovation concrete and accessible," said Erik Luts, KBC Group's chief innovation officer ^[2].

MiCA Implementation Timeline and Regulatory Landscape

The bank did not specify which authority it coordinated with, and Belgian authorities have not issued any MiCA licenses yet according to the public register maintained by the European Securities and Markets Authority (ESMA) ^[2].

Belgium's MiCA implementation came later than some EU member states. The country published its implementing law in December 2025, with MiCA becoming legally effective in Belgium on January 3, 2026, according to the Belgian Official Gazette. The law officially designated two Belgian authorities for crypto asset market oversight: the Financial Services and Markets Authority (FSMA) and the National Bank of Belgium (NBB) ^[2].

KBC had initially announced plans to offer Bitcoin and Ether trading via Bolero in July 2025, pending regulatory approval that was expected by year-end ^[2].

These developments illustrate how European banks are integrating cryptocurrency services within the continent's evolving regulatory framework, balancing innovation with compliance requirements as MiCA takes effect across member states.