Societe Generale ‘crypto’ division secures France’s first digital asset license

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Societe Generale’s virtual asset subsidiary has clinched the first-ever digital asset service provider (DASP) license from French regulators after meeting stringent requirements.

SG Forge, the digital currency division of France’s third-largest bank, received the DASP license on July 19 from the Autorite des Marches Financiers (AMF). The move makes Forge the first and only firm to receive a full operational license from the AMF as it doubles down on its institutional offerings.

“This will allow us to continue supporting our institutional clients wishing to benefit from services on digital assets that meet the highest standards of compliance and banking security,” said Forge CEO Jean-Marc Stenger.

Stenger described the license award as the “highest level of regulatory certification” possible for firms seeking to operate in France. The executive said that it demonstrates a streak of compliance with existing rules and a robust security framework to protect the assets of its institutional clients.

The company disclosed that as the first DASP-licensed firm in France, it is poised to align itself with the provision of the incoming European Union Markets in Crypto Assets (MiCA) law set to be operational by 2024.

Stenger noted that the AMF’s approval would bring the firm one step closer to the launch of its Euro CoinVerible (EURCV) stablecoin. The EURCV debuted on Ethereum in April 2022, achieving modest success, but Forge is eyeing an even larger adoption rate for the stablecoin among institutional clients.

Forge’s path to achieving a DASP license began in September 2022 when it received a registration status. The registration status allowed the firm to carry out digital asset services in the country pending full approval, which it described as a “mandatory step.”

At the moment, 91 firms have obtained registration status in France, including global players such as eToro, Crypto.com, and Binance.

Keen to avoid the pitfalls of imploding centralized entities, the AMF has adopted a slow and steady approach toward granting its licenses. It remains unclear if Forge’s approval will open the floodgates for more firms to receive their licenses from the AMF.

France tightens the screws

The French government has been pushing for sterner rules to police the digital currency ecosystem in the wake of high-profile collapses in 2022, with regulators considering phasing out the registration category for industry operators.

“All the disorder in 2022 feeds a simple belief,” said Bank of France Governor François Villeroy de Galhau. “It is desirable for France to move to an obligatory licensing of DASP as soon as possible, rather than just registration.”

Furthermore, the country’s Senate is inching toward the passage of new bills to regulate the use of influencers for digital currency promotions. Initially mulling a blanket ban, the lawmakers edited the bill’s text to allow firms with registration status to enlist the services of influencers to promote their offerings.

Watch: What’s next for digital asset exchanges & investment?