Hexarq Receives Regulatory Approval for Crypto Services in France

France's Financial Regulatory Approval for Hexarq: A Game-Changer in the Cryptocurrency Landscape

In a significant development within the European cryptocurrency market, the Autorité des Marchés Financiers (AMF), which is France's financial markets regulator, has approved the cryptocurrency operations of Hexarq. Hexarq, a subsidiary of the renowned French bank BPCE, has now been authorized to operate as a crypto asset service provider (CASP) in France. This authorization was officially announced in a notice by the AMF on December 20, 2023.

What Hexarq's Approval Means

With this regulatory green light, Hexarq can now offer a wide array of cryptocurrency services which include:

• Custody Services: Safeguarding digital assets for clients.
• Buying and Selling: Facilitating transactions involving cryptocurrencies.
• Trading: Enabling users to trade cryptocurrencies against the euro.

This approval marks a pivotal moment for BPCE, placing it among Europe's leading banks as it plans to integrate Hexarq's crypto functionalities into its primary banking networks, specifically the Banque Populaire and Caisse d'Épargne. The integration is set for a rollout by 2025, potentially opening the doors to cryptocurrency investment services for BPCE's 35 million clients, while the bank's assets under management are projected to reach around 1.3 million euros by the close of September 2024.

Hexarq: A Focus on Digital Assets

Hexarq, which was launched in January 2021, is committed to the advancement of digital assets. The company’s focus spans a broad spectrum, including cryptocurrencies as well as tokenized versions of real-world assets. With AMF's approval, Hexarq has become the fourth crypto firm to receive CASP authorization in France.

Comparative Landscape of Authorized CASPs in France

Other notable companies that have also received CASP authorization from the AMF include:

• Société Générale's Forge: A subsidiary known for its innovative approaches to digital assets.
• Deblock SAS: Another emerging player in the cryptocurrency space.
• GOin SAS: A firm specializing in several digital asset services.

The AMF started accepting CASP applications in August 2024, in anticipation of the full implementation of the Markets in Crypto-Assets (MiCA) regulations scheduled for December 30, thereby solidifying France's position in the burgeoning crypto economy.

Conclusion: The Road Ahead for Hexarq and BPCE

As Hexarq gears up for its integration with BPCE's banking networks, it represents a significant shift towards the mainstream adoption of cryptocurrency services among traditional banks in Europe. With such regulatory backing, the prospects for Hexarq—and the clients it serves—seem promising in a landscape that is rapidly evolving.

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