March 27, 2024
Latest Cryptocurrency News

Société Générale Subsidiary Becomes First Company to Secure Highest Crypto License in France

Forge, a subsidiary of Société Générale, the third-largest bank in France, has achieved a significant milestone by obtaining the highest access license for providing crypto services in the country, known as the Prerequisite for Numerous Service Activities (PSAN). With this accreditation, Forge gains the right to custody digital assets, engage in the purchase and sale of these assets for legal tender, and trade them against each other.

Local media took note of this development when it appeared in the register of the French stock market regulator, the Autorité des Marchés Financiers (AMF), on July 19. Société Générale representatives expressed their thoughts on this achievement in a press release, stating that this accreditation represents the highest level of regulatory certification available for digital asset transactions.

Up to this point, approximately 90 companies have been included in the AMF’s list of licensed providers. Notably, one of Société Générale’s main competitors, Crédit Agricole, received approval for digital custody in June 2023. However, Forge became the first company to obtain the highest approval for numerous services from the regulator. This strict regulatory requirement for such a level of approval appears to favour larger traditional banks over smaller crypto companies, according to French radio station Business FM.

Société Générale has shown considerable activity in the crypto sector, engaging in various ventures such as issuing euro bonds on the Ethereum blockchain, security tokens on the Tezos blockchain, and proposing Dai stablecoin loans in exchange for bond tokens. In April 2023, Forge launched EUR CoinVertible, a euro-pegged stablecoin catering to qualified institutional clients. However, access to this new digital asset is limited to investors who have undergone Société Générale’s Know Your Customer and Anti-Money Laundering procedures.

Although France remains one of the more crypto-friendly European jurisdictions, there have been recent investigations involving the local arm of Binance. The Judicial Investigation Service of Finance, under the direction of the specialized interregional jurisdiction of Paris, has initiated a preliminary investigation concerning this matter.

Image: Wikimedia

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