BPCE crypto unit gains regulatory approval in France
BPCE crypto unit gains regulatory approval in France
The Autorité des Marchés Financiers (AMF), France's financial markets regulator, has authorized Hexarq, a cryptocurrency subsidiary of the French banking group BPCE, to provide crypto-related services. This marks a significant milestone for the integration of digital assets into mainstream financial services in France.
Hexarq’s authorization under the Crypto Asset Service Provider (CASP) framework allows it to provide crypto custody, trading, and euro-paired transactions. Set to launch its services in 2025, Hexarq will integrate its cryptocurrency platform into BPCE’s primary banking networks, Banque Populaire and Caisse d'Épargne, offering crypto investment opportunities to the bank's 35 million customers.
Launched in 2021, Hexarq is focused on cryptocurrencies and tokenized real-world assets, aligning with the growing demand for secure and regulated digital asset services in Europe. The BPCE group’s entry into the crypto market is noteworthy, with assets under management reaching €1.3 trillion ($1.3 trillion) as of September 2024.
AMF’s expanding regulatory framework
Hexarq becomes the fourth entity to receive CASP authorization from the AMF, joining Société Générale’s Forge, Deblock SAS, and GOin SAS. This approval reflects the AMF's proactive stance in fostering a regulated environment for cryptocurrency operations, especially ahead of the full implementation of the Markets in Crypto-Assets (MiCA) regulations set for December 2024.
The AMF began accepting CASP applications in August 2024, enabling companies to prepare for MiCA compliance. BPCE’s entry into the sector underlines the growing importance of institutional participation in the regulated crypto ecosystem, a trend that is expected to shape the future of digital finance in Europe.
The approval of Hexarq signals a pivotal moment in France’s adoption of digital assets. As Hexarq gears up to roll out its services, its integration within BPCE’s banking networks could set a precedent for other financial institutions to follow. This development highlights France’s progressive approach to crypto regulation and its potential to become a leading hub for institutional digital asset services.
Read also: FBS celebrates 2024 CSR success
