BPCE Gains Approval to Enter France’s Crypto Market: A Game Changer for the Sector

By Robin Wigglesworth

France is quickly establishing itself as a central hub for cryptocurrency services in Europe, and now, one of the country’s largest banking groups, BPCE, is preparing to dive into the crypto world. The Autorité des Marchés Financiers (AMF), France’s financial market regulator, has approved BPCE’s subsidiary, Hexarq, to offer cryptocurrency services, marking a significant milestone for the French financial landscape. These services, which are expected to launch in 2025, will integrate digital asset offerings with the bank’s existing network, setting the stage for widespread adoption of crypto by mainstream consumers.

BPCE’s Strategic Move into Crypto

Hexarq, BPCE’s crypto-focused subsidiary, has been granted PSAN (Prestataire de Services sur Actifs Numériques) authorization by the AMF, which allows it to offer crypto custody services, and to legally buy, sell, and trade cryptocurrencies against the euro. This certification marks a critical step in BPCE’s efforts to provide its customers access to the rapidly growing digital asset market.

This approval places BPCE among an elite group of French financial institutions, as Hexarq becomes the fourth crypto business to receive CASP (Crypto Asset Service Provider) authorization from the AMF. In 2023, Société Générale’s Forge crypto subsidiary was the first to be granted such approval, followed by Deblock SAS and GOin SAS.

BPCE’s Influence in the French Banking Sector

BPCE is not a small player in the French banking sector. With over €1.3 trillion in assets under management and a customer base exceeding 35 million, BPCE’s entry into the crypto space is a game changer. Hexarq’s integration into the two major banking networks under BPCE—Banque Populaire and Caisse d’Épargne—will provide millions of customers with easy access to digital assets, marking a new era of crypto services for retail banking customers.

Hexarq’s Vision for Crypto Services

Launched in early 2021, Hexarq’s focus has been on providing digital asset services, including the custody and trading of cryptocurrencies and the tokenization of real-world assets (RWAs). The subsidiary is now expanding its services, planning to roll out a dedicated app that will be fully integrated into BPCE’s banking platforms. By 2025, this integration is expected to offer customers seamless access to the world of crypto, enabling them to buy, sell, and hold digital assets directly through their existing banking relationships.

France at the Forefront of EU Crypto Regulation

France is taking a proactive approach to crypto regulation, positioning itself as a leader in Europe’s evolving regulatory landscape. The AMF has been leading the charge in establishing clear guidelines for digital asset service providers, allowing firms like Hexarq to enter the market with the necessary regulatory approvals.

This move comes ahead of the MiCA (Markets in Crypto-Assets) regulation, which will officially come into effect on December 30, 2024. France’s head start in crypto licensing makes it a key player in shaping Europe’s regulatory environment, ensuring that crypto businesses can operate within a clear legal framework long before MiCA becomes fully enforced.

France’s Growing Crypto Hub

The regulatory landscape in France is evolving rapidly, and the country is quickly emerging as a key hub for cryptocurrency operations in Europe. Several exchanges, including Gemini, have recently expanded into France, further solidifying the country’s role as a strategic market for crypto companies. Gemini, for example, secured its VASP (Virtual Asset Service Provider) registration in November 2024 and is now poised to take advantage of the opportunities within the French market.

However, not all crypto firms are ready to embrace the new regulatory landscape. Some exchanges, such as Bybit, are preparing to halt operations in France by January 2025 in anticipation of the upcoming regulatory changes. Despite these shifts, the broader trend points to a continued expansion of crypto services in France, thanks to clear regulation and an increasingly favorable market environment.

BPCE’s Move Could Transform the French Crypto Market

BPCE’s foray into crypto represents a pivotal moment for both the French banking system and the broader European crypto market. By integrating crypto services with its existing networks, BPCE has the potential to offer millions of customers easy access to digital assets, making crypto much more mainstream. The move also positions BPCE to benefit from the ongoing surge in demand for crypto services, driven by growing institutional interest and regulatory clarity.

As France takes the lead in regulating the crypto space, BPCE’s integration of crypto into its banking services will likely serve as a model for other European financial institutions looking to enter the market. With Hexarq’s services poised for launch in 2025, BPCE could very well be at the forefront of a new wave of adoption that sees crypto move beyond niche interest and into the financial mainstream.

In the coming years, as France’s regulatory environment becomes more defined and the broader EU market follows suit, BPCE’s move into crypto may well mark the beginning of a new era of digital finance in Europe.