France’s cryptocurrency scene is undergoing a significant transformation. The powerhouse banking entity, Société Générale, has propelled its subsidiary, Forge, to a pioneering status in the crypto landscape.
Forge recently became the first-ever company in France to receive the highest access license for offering cryptocurrency services, a crucial development in the country’s digital asset industry.
Navigating the crypto frontier in France
Forge’s groundbreaking achievement has elevated it to the upper echelons of the cryptocurrency providers in France. This unprecedented license gives Forge the green light to custody digital assets, facilitate their purchase, and sell them for legal tender.
Furthermore, it allows the trading of these digital assets against each other. This update in France’s financial landscape was noted by the local media on July 19, as an entry in the register of the French stock market regulator, the Autorité des Marchés Financiers (AMF).
This development signifies an endorsement of the highest caliber for digital asset transactions within France’s regulatory framework. Notably, almost 90 companies were already part of the AMF list of licensed providers.
Société Générale’s formidable competitor, Crédit Agricole, through its subsidiary, had received digital custody approval in June 2023. However, Forge’s recent achievement of attaining the highest level of approval from the regulator for various services is a first.
This development underlines the stringent requirements set by France, favoring large traditional banks over smaller crypto entities.
Pioneering digital asset transactions
Société Générale, through Forge, has demonstrated impressive agility in the digital currency sector, launching a euro-pegged stablecoin, the EUR CoinVertible, for qualified institutional clients in April 2023.
This new asset is accessible exclusively to investors who have been onboarded through Société Générale’s established Know Your Customer (KYC) and Anti-Money Laundering (AML) procedures.
Moreover, the banking giant has made significant strides in the digital space, floating euro bonds on the Ethereum blockchain and security tokens on the Tezos blockchain, while also offering Dai stablecoin loans for bond tokens.
While France continues to demonstrate a progressive stance towards cryptocurrency, significant regulatory scrutiny still exists.
Binance’s local French division is currently under preliminary investigation by the Judicial Investigation Service of Finance. This scenario serves as a stark reminder of the necessary oversight in this evolving industry.
Amid the backdrop of increased interest from major global financial entities and a rallying crypto market in 2023, Société Générale’s licensed crypto unit, Forge, now has the capability to offer services such as crypto custody, trading, and sales.
While dozens of firms, including leading cryptocurrency exchange Binance, have registered with the AMF, Forge stands out as the first to receive full licensure.
To acquire such a license, the firm must be based in France and comply with specific organizational, financial resource, and business conduct requirements.
This step confirms Forge’s pioneering role in the crypto-assets ecosystem and sets the stage for France’s flourishing digital asset market.
