French bank first to obtain licence to trade and custody…

Societe Generale, the third biggest French bank, has become the first bank to procure a licence to provide trading and custody of cryptocurrency assets.

Societe Generale has its own cryptocurrency division, SG Forge, which is now licenced to offer the buying, selling, and custody of digital assets. According to the press release on the SG Forge website, being in possession of a DASP (Digital Asset Service Provider) licence means that Societe Generale has demonstrated:

“a comprehensive level of security and reliability of compliance, internal control and cybersecurity processes and systems, as well as the maintenance of sufficient regulatory capital”

Jean-Marc Stenger, CEO of Societe Generale Forge said of the licence acquisition:

“With the DASP license approval, Societe Generale – FORGE confirms its pioneering role in the crypto assets ecosystem. This step will allow us to continue supporting our institutional clients wishing to benefit from services on digital assets that meet the highest standards of compliance and banking security.” 

Opinion

With such an important French bank entering into the race to offer crypto services, this is an important feather in the cap of France’s ambitions to become the premier crypto hub in Europe.

The UK will no doubt be following this move carefully. Being outside of the European Union, but still in Europe as it were, it has some advantages over its European competitors in being free to set its own agenda and plans for crypto supremacy in this part of the world.

Other parts of the world that are hoping to take advantage of crypto technology, such as Singapore, Dubai, Hong Kong etc., will also be watching these events closely.

However, the US, the biggest economy in the world, is forced to sit on the sidelines, impotently watching as the rest of the world starts to divide up the technological spoils. As this happens, its watchdog financial agencies, the SEC, and the CFTC, are engaged in trying to erase the crypto industry from its shores, possibly under the assumption that crypto might be a threat to the dollar.

It’s not just the US financial agencies either. So-called global financial agencies such as the IMF, the FATF, and others, with the addition of all central banks, are aligned in the same endeavour.

Be that as it may, no technology in history has ever been successfully repressed for any length of time. For the US to be on the wrong side of this says much for the new direction that this world power is now following.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.