Written by Hazel J. Greene, Senior Analyst

News of Societe Generale’s crypto subsidiary, Forge, obtaining the first Digital Asset Service Provider (DASP) license in France has taken the financial world by storm. Granted by France’s stock market regulator, Autorité des Marches Financiers (AMF), this license expands the reach of Societe Generale Bank into the digital asset space. While several digital asset service providers are currently operating in France, they are only registered with the AMF and do not possess a DASP license, making Forge’s achievement all the more significant.

A DASP license is mandatory for companies, both local and foreign, wanting to provide services like digital asset custody and crypto exchange services in France. It sets higher standards of compliance in areas such as organization, financial resources, and business conduct. By securing this license, Forge positions itself to meet institutional clients’ increasing demand for digital assets.

Forge CEO Jean-Marc Stenger expressed excitement about the license, highlighting how it will empower the company to scale its services with institutional clients in the country. The AMF website states that the DASP license grants Forge the rights to act as a digital asset custodian, transact digital assets for France’s legal tender, trade digital assets, and execute transaction orders on behalf of third parties.

Societe Generale’s subsidiary acquiring a DASP license signifies the growing engagement of traditional finance firms with the crypto space. With Societe Generale being the third-largest bank in France, this news has stirred excitement within the crypto community. Prominent crypto analyst Michaël van der Poppe believes that traditional finance institutions will be the driving force behind the next significant bull market, further emphasizing the importance of this development.

While Societe Generale celebrates this milestone, preparations are also underway for the European Union Market in Crypto Asset (MiCA) Regulation set to take effect in 2024. The European Banking Authority (EBA) recently released guidelines for stablecoin operators, urging them to make necessary arrangements to avoid any business disruptions under the new regime. Additionally, the European Securities and Market Authorities (ESMA) have initiated consultations with key players in the crypto industry to gather input on implementing the MiCA regulations effectively.

Societe Generale’s approval as a licensed DASP aligns with the preparation required for compliance with the forthcoming MiCA regime. Under this new regulatory framework, all crypto asset service providers operating within the European Union member states must obtain a license. Forge’s early acquisition of the DASP license positions the company favorably for the implementation of MiCA regulations.

The cryptocurrency landscape continues to evolve, with traditional financial institutions increasingly recognizing the potential of digital assets. Forge’s DASP license represents a significant step forward for Societe Generale and further highlights the growing convergence between traditional finance and the crypto industry.

Disclaimer: The information provided in this research report is for informational purposes only and should not be interpreted as financial or investment advice. The cryptocurrency market is highly volatile, and readers should conduct thorough research before making any investment decisions.