Societe Generale’s crypto arm SG Forge acquired a license from France’s leading financial regulator, making it the first digital asset company to obtain such a permit in the country. Meanwhile, renowned crypto institutions like Binance are registered in France with the regulator but have yet to become licensed digital asset service providers.
TradFi Institution’s Crypto Arm First to Obtain License in France
SG Forge, the crypto division of the European banking giant Societe Generale, obtained a license to provide digital asset services in France from the country’s top financial regulator. The approval makes SG Forge the first licensed company to offer such services in France.
With its permit, Societe Generale’s unit now can provide trading, exchange, and custody services associated with digital assets as of July 18, according to the official website of the Autorité des Marchés Financiers (AMF), the French financial watchdog.
Interestingly, this means that a cryptocurrency division of Societe Generale, a traditional finance (TradFi) institution, is France’s first licensed digital asset service provider, even though many crypto-native firms operate in the country. For instance, Binance, which is being investigated by French authorities for potential money laundering, is registered with the AMF but has not yet acquired a license.
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The Difference Between Registering and Licensing in France
According to the AMF, there is a clear distinction between registration and licensing regarding the regulation of financial service providers in France. Specifically, a company must register with the regulator to offer crypto custody, exchange, and trading services in the Western European nation.
Meanwhile, licensing requires a specific firm to be established in France. “In that case, you must comply with certain requirements regarding organization, financial resources, and business conduct,” the website states. This suggests that licensing demonstrates more significant compliance with regulatory requirements than registration.
Earlier this year, the European Union (EU) council adopted the bloc’s most comprehensive set of rules to regulate the crypto sector, known as the Markets in Cryptoassets (MiCA). The legislation is set to come into force in 2024 and could potentially put the EU ahead of other global jurisdictions regarding crypto regulation. Unfortunately, the same cannot be said for the US now, given the government’s ongoing crackdown on the nascent industry.
In your opinion, why haven’t established crypto firms like Binance yet received a license from France’s AMF? Let us know in the comments below.
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