In a landmark decision under Europe's Markets in Crypto-Assets (MiCA) Regulation, France's Société Générale has obtained the Digital Asset Service Provider (DASP) license from the Autorité des Marchés Financiers (AMF). This pivotal approval empowers the bank to offer fiat-to-crypto trading, custody services, and Bitcoin transaction execution, marking a significant stride in institutional crypto adoption.
Key Services Enabled by the DASP License
Société Générale’s crypto subsidiary, Forge, is now authorized to provide:
- Digital asset custody (secure storage for institutional clients)
- Fiat currency conversions (buy/sell crypto with EUR/USD)
- Crypto-to-crypto trading pairs
- Order execution for third-party digital assets
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A Pioneering Move in European Finance
Jean-Marc Stenger, CEO of Forge, emphasized the institution’s commitment to compliance and security:
"This license solidifies our position as a leader in Europe’s digital asset ecosystem. We adhere to the highest banking standards to serve institutional clients."
Notably, Société Générale is the first French bank to achieve full DASP registration—a rigorous process requiring adherence to strict governance, IT security, and anti-money laundering protocols. Unlike basic AMF registrations (held by Binance and others), the DASP license demands local incorporation and audited operational transparency.
Contrasting Trends: Europe vs. the U.S.
While Europe advances, U.S. institutions face regulatory hesitancy:
- Nasdaq abandoned plans for a crypto custody service due to SEC uncertainties, specifically citing SAB 121—a rule forcing custodians to list client crypto holdings as balance-sheet liabilities.
- Despite this, Nasdaq continues supporting crypto via ETF partnerships, including BlackRock’s spot Bitcoin ETF application.
Why SAB 121 Deters U.S. Banks
- Capital burdens: Banks must offset crypto custody liabilities with additional capital reserves, raising operational costs.
- Regulatory ambiguity: SEC Chair Gary Gensler’s stance and political pressures (e.g., Senator Elizabeth Warren) exacerbate compliance challenges.
FAQs: Société Générale’s Crypto License
1. What does the DASP license allow Société Générale to do?
It permits fiat-crypto exchanges, custody, and Bitcoin trading for institutional clients, all under MiCA-compliant frameworks.
2. How does this impact Europe’s crypto landscape?
The approval sets a precedent for traditional banks entering crypto, boosting legitimacy and attracting institutional capital.
3. Why did Nasdaq cancel its crypto custody plans?
Due to SAB 121, which imposes costly balance-sheet requirements for crypto custodians, creating unsustainable capital demands.
4. Will other European banks follow Société Générale?
Likely. MiCA’s clarity encourages banks to seek DASP licenses, fostering a regulated, competitive market.
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Conclusion: A Watershed for Crypto Banking
Société Générale’s milestone underscores Europe’s progressive stance under MiCA, contrasting with U.S. regulatory hurdles. As more banks pursue DASP licenses, expect accelerated institutional crypto integration—with security and compliance at its core.