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BTC Pulse 2024-12-21 14:43:27

French Regulator Authorizes Crypto Operations for BPCE Subsidiary Hexarq

Introduction France’s financial markets regulator , Autorité des Marchés Financiers, or AMF, has just given a license to Hexarq, the crypto subsidiary of BPCE, as an officially registered crypto asset service provider, CASP. In fact, this makes Hexarq only the second banking crypto operation in France to be licensed as such, following Société Générale’s Forge. This move is an important milestone for the mainstreaming of cryptocurrencies in European banking. Hexarq: The Expansion of BPCE in Crypto Launched in January 2021, Hexarq focuses on the provision of cryptocurrency services and management of tokenized real-world assets. With its CASP authorization, Hexarq is now allowed to provide crypto custody, buying, selling, and trading services, including euro-crypto exchanges. The company will merge its services into BPCE’s top banking networks, Banque Populaire and Caisse d’Épargne, by 2025. This would make services accessible to BPCE’s 35 million customers, placing Hexarq among the key players in leading the adoption of digital assets among the European banking system. A Major Milestone for European Banking The foray of BPCE into cryptocurrency space reflects the increasing momentum in the traditional banking world embracing digital finance. Given that BPCE had $1.3 trillion in assets under management as of September 2024, many consider its involvement to accelerate cryptocurrency adoption across Europe. With the integration of Hexarq soon, millions of customers will be able to safely access and invest in cryptocurrencies through a trusted banking platform. Limited CASP Authorizations Signal Regulatory Caution Hexarq is the fourth crypto business to receive CASP authorization from the AMF. Other authorized entities include Société Générale’s Forge, Deblock SAS, and GOin SAS. The French regulator’s cautious approach emphasizes thorough vetting ahead of the full implementation of EU-wide Markets in Crypto-Assets (MiCA) regulations, which will take effect on December 30, 2024. In August 2024, AMF began to take applications for CASPs in line with MiCA. The number of authorizations is still limited and thus indicates the regulator’s desire for compliance and consumer safety in an emerging industry . Conclusion The AMF approval of Hexarq marks a very important milestone not only for BPCE but for the entire financial industry in general. Such a blend of traditional banking with crypto services places BPCE in a position to drive great innovation in the European financial space, bridging conventional finance and the fast-growing digital economy.

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