Societe Generale Advances In Digital Assets With First DASP License In France
- Societe Generale Forge is the first digital asset service provider to receive a license under France’s new crypto rules, allowing it to act as a custodian for digital assets and trade them.
- The license enables Forge to meet institutional demand for digital assets and develop digital asset solutions for institutional clients.
Societe Generale Forge becomes the first DASP to receive a license under France’s new crypto rules, allowing it to act as custodian for digital assets and trade them. The license enables Forge to meet institutional demand for digital assets and positions it favorably to navigate the regulatory landscape in the digital asset market.
Societe Generale’s blockchain unit, Forge, has significantly expanded into digital assets by becoming the first digital asset service provider (DASP) to receive a license under France’s new crypto rules. The Autorité des Marchés Financiers, France’s financial markets regulator, designated Forge as a DASP, which allows the company to act as a custodian for digital assets, trade digital assets for other digital assets, and arrange the purchase and sale of digital assets using legal tender.
This license comes at a time when the crypto industry is facing increasing regulatory scrutiny. France’s DASP regime is more complex than the registration process for crypto companies, which only requires firms to adhere to anti-money laundering rules. This license will enable Forge to meet institutional demand for digital assets. Jean-Marc Stenger, Forge’s CEO, said that the license will allow Forge to develop digital asset solutions for institutional clients.
The recognition of Forge as a DASP is a significant milestone for the investment bank and highlights the increasing acceptance of cryptocurrencies by traditional financial institutions. As Europe’s Markets in Cryptoassets (MiCA) rules are set to take effect in January 2025, all crypto providers will be required to obtain a full license from a member state to operate in the bloc. This development positions Forge favorably to navigate the regulatory landscape and compete in the digital asset market.
The license also signals Societe Generale’s commitment to digital assets and blockchain technology. The investment bank has been an active participant in the digital asset industry, having issued a 100 million euro bond as a security token on the Ethereum blockchain in April 2019. Societe Generale’s endorsement of digital assets can only help to increase their adoption and legitimacy in the financial world.
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