France’s second-largest bank, Groupe BPCE set to open Bitcoin floodgates to 35 million users

France’s banking giant, Groupe BPCE, is reportedly set to roll out Bitcoin investment services for its massive customer base of 35 million.

This is done through Hexarq, BPCE’s crypto-focused subsidiary, with a fully licensed operation backed by France’s financial regulator, the Autorité des marchés financiers (AMF). By 2025, BPCE will give its clients access to buy, sell, and hold crypto directly within its Banque Populaire and Caisse d’Épargne networks.

Hexarq is one of the few financial institutions in France to secure a PSAN (digital asset service provider) registration, placing BPCE in a league with major players like Société Générale’s SG Forge.

France tightens the crypto game

This all comes at a time when France is shaping up as a European leader in crypto regulation. Since the PACTE Law of 2019, the country has required all crypto firms to register with the AMF, setting strict rules for compliance.

Its market is growing rapidly. Around 6.5 million French citizens, or 12% of the population, now own crypto. This is a slight jump from the 9.6% reported in 2023. And the demographics show an interesting development: 57% of current holders are under 35, with men making up 70% of all investors.

This boom coincides with Bitcoin breaking past $100,000, a milestone that’s turning heads everywhere. But the French government has also been cracking down on illegal crypto operations, including unregistered ATMs. Operators caught dodging the rules face penalties of up to €30,000 and potential jail time.

The upcoming implementation of the European Union’s Markets in Crypto-Assets (MiCA) regulation on December 30, will further harmonize crypto laws across the EU. France is already aligned with MiCA standards.