Key takeaways:
- The Autorité des Marchés Financiers grants Société Générale’s SG Forge division the first-ever, difficult-to-obtain crypto licence.
- The licence authorises Forge to conduct digital asset custody, sell and buy digital assets for legal tender, and exchange digital assets.
In a landmark development for the cryptocurrency industry, Societe Generale, one of France‘s leading financial institutions, has been granted the first-ever crypto license by French regulatory authorities.
The license, known as “Prerequisite for Numerous Service Activities” (PSAN), grants Forge the right to offer a range of crypto-related services, including digital asset custody, purchasing and selling cryptocurrencies for legal tender, and conducting crypto-to-crypto trading.
The significance of this achievement has not gone unnoticed by the French financial community, as it was highlighted in an update on the register of the French stock market regulator, the Autorité des Marchés Financiers (AMF), on July 19.
In a press release, representatives from Société Générale expressed their satisfaction with obtaining this license, emphasizing that it represents the highest level of regulatory certification currently available for digital asset transactions.
This groundbreaking move marks a significant step towards legitimizing and integrating cryptocurrencies into the traditional financial system in France. With this license, Societe Generale is poised to explore innovative financial services, while also adhering to regulatory compliance and ensuring customer protection.
According to Forge CEO Jean-Marc Stenger, the licence “confirms our pioneering role in the crypto assets ecosystem.” Stenger noted that it will allow Forge to address the demand for digital assets from institutional clients.
It is worth noting that the French banking giant introduced new services for its institutional clientele last September. The services were designed for institutions wanting to profit from increased Bitcoin and cryptocurrency demand.
SG Forge’s acquisition of the new crypto license sets it apart from many other cryptocurrency firms operating in France, including prominent players like Binance, the world’s largest cryptocurrency exchange.
Despite France being considered one of the more favorable European jurisdictions for cryptocurrencies, the French branch of Binance, the world’s largest cryptocurrency exchange, is currently facing a preliminary investigation.
While registration is mandatory for all firms seeking to operate in the French crypto sector, obtaining a license, like the one secured by SG Forge, requires a higher level of compliance with regulatory standards.
