- The crypto division of France’s third-largest bank is the first to get a license in France.
- A company may only apply for a license if it has a physical presence in the country.
Société Générale, one of the major commercial banks in France, has become the first French company to get a crypto license for its crypto division, FORGE. The most recent development is that SG FORGE received its AMF authorization on Tuesday, July 18.
As a result, the crypto department may now provide services including digital asset custody solutions and the purchase/sale of digital assets using fiat currency. Providing services for the buying and selling of digital assets, as well as receiving and sending orders from other parties, falls under this category as well.
Several crypto companies, including Binance, the biggest cryptocurrency exchange in the world have registered with the AMF. The crypto division of France’s third-largest bank, FORGE, is the first to get a license, nevertheless. Binance was investigated for breaching AML and KYC in France last month.
Strict Compliance Mandatory
In France, businesses need to be registered in order to provide cryptocurrency custody, exchange, or trading services to residents. In order to proceed, the company must conform to certain regulations about its structure, finances, and ethics.
According to the website of the French financial regulator, the Autorité des Marchés Financiers (AMF), a company may only apply for a license if it has a physical presence in the country. Therefore, a license shows a greater degree of compliance with regulatory criteria than registration alone.
Issuers and investors alike may take advantage of the novel services provided by Societe Generale – FORGE. Using the expertise of Societe Generale Group teams, they aid in the management of digital financial instruments that have been registered on the blockchain.
FORGE services are built on top of legal, operational, and technological frameworks to guarantee complete legal and regulatory compliance from day one. Thus, facilitating easy integration into legacy systems (thus lowering adaption costs), and supporting the usage of many blockchain protocols.
The SG FORGE platform introduced its own “convertible” stablecoin in April of 2023. A stablecoin built on the Ethereum blockchain that is suitable for use in institutional settings. The French banking platform SG FORGE intends to connect digital assets with financial markets. Thus, the solutions provided by SG FORGE are in accordance with standard procedures in the financial sector.
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