Odaily Planet Daily News SG Forge, an encryption subsidiary of Societe Generale, took the lead in obtaining France's first cryptocurrency license last week. The move could signal a long-term strategy as European law MiCA is about to replace this license.
It is reported that the license granted to SG Forge by the French financial market authority is optional and difficult to obtain. The license signals that SG Forge strengthens its IT security and liability insurance, and allows it to offer a wider range of encryption services and to advertise more easily.
So far, SG Forge is the only company with this license. Another 88 companies operate under the AMF's mandatory registration, which requires lower standards and limits the services they can provide.
However, this complex licensing regime will be abolished when the EU's new encryption rulebook comes into effect at the end of 2024. The benefit of SG Forge's new license this time is that France may offer a "fast-track" transition process from its national law to MiCA.
“Many companies are currently considering obtaining approval in France because they recognize the similarities between French approval and MiCA,” said Daniel Arroche, partner at the French blockchain law firm. Easy to implement."
Some sources indicate that about a dozen companies are trying to obtain an AMF license. Experts expect more news in the coming months as more companies receive licenses.
Circle announced in March that it was applying for a French license to "double down" on European expansion. (DL News)
Prior to the news on July 19, SG Forge, the cryptocurrency division of Societe Generale Bank, has become the first company in France to be approved by the country's financial regulator AMF (French Financial Market Authority) to provide cryptocurrency services. According to the AMF’s website, SG Forge was approved to provide buying, selling, trading and custody services for digital assets from July 18.