Key Notes
- Hexarq, a BPCE subsidiary has recent approval to operate crypto services in France.
- This license signals a shift in France amid growing interest in digital currencies.
- France remains a tough region to receive approval with Bybit recently exiting the market.
France is witnessing a financial evolution as BPCE, one of its largest banking groups, steps into the world of crypto. BPCE’s crypto subsidiary, Hexarq, has recently secured approval to start its crypto operations from the Autorité des Marchés Financiers (AMF), the country’s financial markets regulator.
This significant development reflects growing regulatory acceptance of cryptocurrency innovations. Also, it positions BPCE to become a significant player in the crypto industry by 2025.
Hexarq: A New Player with Big Ambitions
Launched in January 2021, Hexarq is a digital asset platform dedicated to crypto assets and tokenized Real-World Assets (RWA). With its recent authorization as a Crypto Asset Service Provider (CASP), Hexarq is set to deliver a suite of crypto services. These include custody solutions, euro-denominated crypto trading, and streamlined buying and selling of digital assets.
The AMF’s approval not only legitimizes Hexarq but also marks it as one of the selected few crypto firms authorized in France. The approval underscores BPCE’s intention to leverage Hexarq within its Banque Populaire and Caisse d’Épargne networks. Reportedly, these networks collectively serve a massive customer base of 35 million.
Starting in 2025, Hexarq’s plans to integrate its services directly into BPCE’s banking platforms. This move aims to make crypto investments accessible to mainstream financial customers. This shift comes as traditional financial institutions are increasingly exploring blockchain technologies. Many are turning to digital currencies to maintain a competitive edge.
BPCE’s entrance into the crypto space is especially significant given its financial value. In late September, the banking group reported Assets Under Management (AUM) of approximately €1.3 trillion, equivalent to $1.3 trillion.
With its resources and customer base, BPCE’s entry into the crypto industry could speed up crypto adoption in France and beyond.
France’s Evolving Crypto Landscape
Hexarq’s approval is part of a broader shift in France’s approach to digital assets. The AMF began accepting CASP applications in August 2024. This was in anticipation of the enforcement of the European Union’s Markets in Crypto-Assets (MiCA) regulations by December 30, 2024.
To date, only three other companies, including Société Générale’s Forge, Deblock SAS, and GOin SAS, have received similar authorization. This limited pool of approved providers positions Hexarq and BPCE at the forefront of regulated crypto services in France.
The bank’s decision to embrace digital assets reflects a strategic shift that could influence other major European financial institutions. Notably, BPCE has not disclosed timelines or product details.
However, integrating Hexarq into its banking networks signals a strong commitment to innovation. By combining traditional banking with the rapidly growing crypto sector, BPCE aims to address the rising demand for secure and regulated digital asset services.
While Hexarq is obtaining a license to offer crypto services in France, Bybit will halt its withdrawal and custody services in the country starting January 8, 2025. The exchange cited the stringent regulatory environment in France as the reason for discontinuing the services to its French customers.
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Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.
