The French financial services giant, Societe Generale has been awarded a license to offer cryptocurrency services in France, becoming the first company to receive this licence of approval in the country.
The license was granted to SG Forge, the digital asset division of the Paris-headquartered company, by the French financial services regulator, Autorité des Marchés Financiers (AMF). It allows the company to facilitate the buying, selling, exchange, and custody of digital assets beginning July 18.
Crypto Firms Seek Registration in France
Although several cryptocurrency exchanges, including Binance, the largest exchange by trading volume, are registered with the AMF, Societe Generale is the first company to be licensed by the authority. The financial institution is ranked the third largest bank by market capitalization in France.
In April, the AMF announced that it was preparing to adopt the Markets in Crypto Assets (MiCA) regulations, which were passed by the EU early this year. Thus, with the rising adoption of cryptocurrencies and the recent volatility witnessed in the sector, France is planning to fully adopt these and other relevant regulations for the region.
MiCA was adopted by the Council of the European Union in May and is considered one of the most comprehensive regulations governing cryptocurrencies. It aims to protect investors trading cryptocurrencies, promote environmental sustainability, and prevent money laundering in the sector.
MiCA Regulations
Following the adoption of the MiCA regulations by the French parliament, the companies offering digital services in France are required to register with the AMF. However, firms seeking full licensing must submit their application in a process involving more stringent disclosure requirements.
In June, the French regulators launched an investigation against Binance for alleged illegal offering of digital services and money laundering claims, Bloomberg reported. In addition, the digital asset exchange faces allegations of conducting cryptocurrency promotions in France before it was registered by the AMF.
The investigations add to a series of regulatory pressure facing the exchange, including a lawsuit by the Securities and Exchange Commission (SEC). The situation is not unique to Binance as other major cryptocurrency exchanges, including Coinbase and Kraken, have been investigated by regulators in the past.
This article was written by Jared Kirui at www.financemagnates.com.
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