BPCE’s Hexarq Granted Approval for Crypto Services by French Regulator

YEREVAN (CoinChapter.com) —  France’s financial regulator, the Autorité des Marchés Financiers (AMF), has authorized BPCE’s subsidiary Hexarq to provide cryptocurrency services. The approval, announced on Dec. 20, allows Hexarq to operate as a crypto asset service provider (CASP).

Hexarq is now authorized to offer a range of cryptocurrency services. These include custody of digital assets, buying and selling cryptocurrencies, and trading crypto against the euro. The move aligns Hexarq with AMF’s regulatory framework for cryptocurrency operations.

Launched in January 2021, Hexarq specializes in digital assets and tokenized real-world assets. BPCE plans to integrate Hexarq into its banking networks, Banque Populaire and Caisse d’Épargne, by 2025, offering customers regulated access to cryptocurrency investments.

BPCE Joins Société Générale in France’s Regulated Crypto Space

Hexarq becomes one of only four crypto businesses approved by the AMF. Société Générale’s subsidiary Forge, authorized in 2023, was among the first to gain CASP approval. Forge focuses on blockchain-based financial solutions within the regulated framework.

The other two CASPs include Deblock SAS and GOin SAS, which received AMF authorization in June 2023 and September 2022, respectively. The limited number of approved providers highlights the stringent requirements for operating in France’s cryptocurrency market.

BPCE’s Hexarq adds a significant player to the small but growing list of regulated cryptocurrency businesses in the country. The inclusion of Hexarq underlines the expanding role of traditional banking institutions in offering digital asset services.

Integration of Hexarq into Banque Populaire and Caisse d’Épargne

Hexarq’s cryptocurrency services will be integrated into BPCE’s two main banking networks, Banque Populaire and Caisse d’Épargne. Together, these networks serve approximately 35 million customers.

BPCE’s assets under management reached €1.3 million ($1.3 million by September 2024, underscoring its potential influence in the cryptocurrency market. Hexarq’s services will aim to provide secure and compliant crypto investment options directly through BPCE’s established banking systems.

The AMF began accepting CASP applications in August 2024, just months ahead of the full implementation of the Markets in Crypto-Assets (MiCA) regulations. Hexarq’s approval positions BPCE as a significant participant in the regulated crypto sector under these forthcoming EU standards.

France’s Regulatory Landscape for Cryptocurrency Services

France’s AMF continues to regulate the cryptocurrency industry through its CASP framework. With only four approved CASPs, competition remains limited in the regulated space. This regulatory environment ensures strict compliance, aligning digital asset services with existing financial laws.

BPCE’s entry into the cryptocurrency sector through Hexarq reflects the ongoing collaboration between traditional banking institutions and digital asset platforms under regulatory oversight. The integration of these services within BPCE’s networks aims to provide broader access to compliant cryptocurrency investments.