Forge, a subsidiary of Société Générale, the third-largest bank in France, has become the first company to obtain the highest access license for providing crypto services in the country. This license, known as a Prerequisite for Numerous Service Activities (PSAN), grants Forge the right to custody digital assets, purchase and sell them for legal tender, and trade them against each other.
This significant development in the French crypto industry was highlighted by local media after an update in the register of the French stock market regulator, the Autorité des Marchés Financiers (AMF), on July 19. According to Société Générale, this accreditation represents the highest level of regulatory certification currently possible for digital asset transactions.
While around 90 companies are already listed on the AMF’s roster of licensed providers, Forge has become the first to receive the highest approval for numerous services from the regulator. This highlights the advantage that large traditional banks like Société Générale have over smaller crypto companies, as the stringent requirements for this level of approval make it more challenging for smaller players to meet.
Société Générale has been actively involved in the crypto sector. They have issued euro bonds on the Ethereum blockchain and security tokens on the Tezos blockchain, showcasing their commitment to exploring and utilizing blockchain technology. Additionally, they have proposed Dai stablecoin loans in exchange for bond tokens and launched EUR CoinVertible, a euro-pegged stablecoin for qualified institutional clients.
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The approval of Forge’s PSAN license further solidifies the bank’s position as a leading player in the crypto space. This move not only demonstrates Société Générale’s dedication to innovation but also positions the bank to capitalize on the growing demand for crypto-related services.
It is worth noting that France has maintained a favorable stance towards cryptocurrencies, establishing itself as one of the friendliest European jurisdictions for crypto businesses. However, the local arm of Binance, one of the world’s largest cryptocurrency exchanges, has recently come under scrutiny. The French arm of Binance is currently the subject of a preliminary investigation conducted by the Judicial Investigation Service of Finance under the direction of the specialized interregional jurisdiction of Paris.
The approval of Forge’s PSAN license opens up new possibilities for the bank and solidifies its position as an industry leader. With the ability to custody digital assets, trade them for legal tender, and engage in crypto-to-crypto trading, Société Générale can offer a comprehensive suite of services to its clients. This not only strengthens the bank’s relationship with existing customers but also attracts new clients who are interested in accessing the benefits of cryptocurrencies in a regulated and secure environment.
The acquisition of the PSAN license by Forge also reflects the wider trend of traditional financial institutions recognizing the potential and importance of cryptocurrencies. As digital assets continue to gain mainstream acceptance, banks and financial institutions need to adapt their offerings to remain competitive. By embracing cryptocurrencies and obtaining the necessary licenses, banks like Société Générale can stay at the forefront of financial innovation and meet the evolving needs of their customers.
In conclusion, Forge’s acquisition of the highest access license for providing crypto services in France is a significant milestone for both the company and the broader crypto industry. It not only establishes Société Générale as a leader in the field but also demonstrates the increasing acceptance and integration of cryptocurrencies within traditional financial institutions. As the crypto market continues to grow, more banks are likely to follow suit, further bridging the gap between traditional finance and the world of digital assets.
