According to Cointelegraph, France's financial markets regulator, the Autorité des Marchés Financiers (AMF), has granted approval for the cryptocurrency operations of Hexarq, a subsidiary of the French bank BPCE. This authorization, announced in an official AMF notice on December 20, allows Hexarq to operate as a crypto asset service provider (CASP) in France.
With this regulatory approval, Hexarq is now authorized to offer a range of cryptocurrency services, including custody, buying, selling, and trading of cryptocurrencies against the euro. This development marks a significant step for BPCE, one of Europe's top ten banks, as it plans to integrate Hexarq's crypto services into its main banking networks, Banque Populaire and Caisse d'Épargne, by 2025. This integration will potentially provide access to cryptocurrency investment services for BPCE's 35 million customers, with the bank's assets under management reaching approximately 1.3 million euros by the end of September 2024.
Hexarq, launched in January 2021, focuses on digital assets, including cryptocurrencies and tokenized real-world assets. The AMF's approval makes Hexarq the fourth crypto business to receive CASP authorization in France. Other companies that have obtained similar approvals include Société Générale's crypto subsidiary, Forge, Deblock SAS, and GOin SAS. The AMF began accepting CASP applications in August 2024, ahead of the full enforcement of the Markets in Crypto-Assets regulations set for December 30.
Despite the approval, BPCE has not disclosed further details about the launch of its cryptocurrency services in 2025. The entry of BPCE into the crypto market is anticipated to have a significant impact, given the bank's extensive customer base and substantial assets under management. This move aligns with the growing trend of traditional financial institutions exploring the cryptocurrency sector, driven by increasing demand for digital asset services.
