Groupe BPCE Taps Hexarq to Strengthen Crypto Presence in EU

Groupe BPCE, one of France’s largest banks, plans to offer its customers Bitcoin and cryptocurrency investment services in 2025.

This initiative will be executed through its subsidiary, Hexarq, which recently secured PSAN (Prestataire de Services sur Actifs Numériques) authorization from France’s financial markets regulator, the Autorité des Marchés Financiers (AMF).

Groupe BPCE Aligns with MiCA, Offers Crypto Through Hexarq in 2025

Hexarq is now the second bank-affiliated crypto entity in France to receive this authorization, following SG Forge. This approval permits Hexarq to legally hold, buy, sell, and exchange digital assets in the country.

The bank aims to broaden its consumer base and improve customer loyalty by integrating these services into an app developed by Hexarq. The app will eventually target clients of its Banque Populaire and Caisse d’Épargne networks – France’s largest banking groups.

Established in 2021, Hexarq will lead BPCE’s first expansion into digital assets. This marks a significant shift from the group’s previously cautious stance on cryptocurrencies. This move also aligns with France’s proactive approach to cryptocurrency regulation.

The AMF began accepting applications for crypto service licenses under the Markets in Crypto Assets (MiCA) regulation in July. All of the comprehensive MiCA regulations will take effect on December 30. This positions France as a leader in implementing crypto regulatory frameworks within the European Union.

“This is a monumental move for mainstream crypto adoption in France! With Groupe BPCE entering the crypto space, we’re looking at a significant shift towards integrating digital currencies into traditional banking services. This could set a precedent for other major banks in Europe to follow suit. Exciting times ahead for crypto enthusiasts and investors alike,” one user wrote.

Crypto has been a grey area in France in recent years. The country seems to be open to promoting crypto adoption but also wants to maintain a tight regulatory grip on centralized exchanges. Earlier this week, Bybit announced that it will cease services for French users starting January 2025.

Meanwhile, the crypto-based prediction platform Polymarket also banned French users due to consecutive warnings from the regulators. Yet, many exchanges continue to go through these regulatory hurdles to operate in this market.

Back in January, crypto exchange Gemini announced its launch in France after securing VASP (Virtual Asset Service Provider) registration, further expanding its European presence.

Overall, Groupe BPCE’s entry into the cryptocurrency market reflects a broader trend among traditional financial institutions embracing digital assets. This strategic move aims to meet growing customer demand and maintain competitiveness in the financial world.