Societe Generale’s subsidiary Forge has received France’s first crypto services license from the Autorite des Marches Financiers (AMF).
The license grants Forge regulatory approval to offer various digital asset services to institutional clients. It comes at a time when European Union regulators are introducing new rules to govern the crypto space.
Forge CEO Jean-Marc Stenger said the license will help them “continue supporting our institutional clients wishing to benefit from services on digital assets that meet the highest standards of compliance and banking security.”
Forge had previously received a preliminary registration with the AMF in September 2022 to operate as a digital asset service provider (DASP). But the new license shows they meet stricter requirements around security, compliance, internal controls and regulatory capital.
The license will help Forge prepare to operate under the European Union’s incoming MiCA regulations, which will require crypto firms to be licensed by an EU member state to operate in the region starting in January 2025.
Forge plans to use the license to further develop its Euro CoinVertible (EURCV) stablecoin, which it launched on Ethereum in April. However, the stablecoin attracted controversy due to flaws identified by independent developers.
Over 90 firms in France currently hold the preliminary DASP registration, including Binance France, Etoro, Crypto.com and Bitpanda. But Forge is currently the only one with the full DASP license.
Societe Generale sees the license as an important step in meeting institutional demand for crypto services while complying with forthcoming regulations. It shows regulators in France are starting to take a closer look at the crypto industry.
In summary, Societe Generale’s Forge gaining France’s first crypto license signals growing regulatory scrutiny of the sector and helps pave the way for upcoming MiCA rules in the EU. The license also gives Forge additional credibility to develop crypto services for institutional clients.
This article is based on the original news published on CryptoSlate.
Disclaimer: This news article is for informational purposes only and does not constitute financial or legal advice. It is important to conduct through research and consult with professionals before engaging in any investment or financial activities.