In the ever-progressing world of cryptocurrency, achieving operational sanction and adherence to regulations is crucial. This has been especially notable for Hex Trust, a digital asset custodian, now registered in France, thereby making a significant stride in its European expansion ambitions. The move signifies their capability to provide a series of services, including custody of digital assets and facilitating buying, selling, and trading of crypto assets within France and Italy.
Why is this significant? Many argue that registration simplifies attaining further permissions across the EU, courtesy of the MiCA regulation. This is in what some would describe akin to a ‘domino effect’; the doors of one EU country flinging open wide to welcome Hex Trust could very well trigger a chain reaction within the 27-nation bloc.
A strong case in point is Hex Trust’s equivalent registration from Italy’s Organismo Agenti e Mediatori (OAM). Acquired in June last year, they are granted a license to operate in Italy, almost mirroring their recent conquests with France’s Autorité des Marchés Financiers (AMF) and the Autorité de Contrôle Prudentiel et de Résolution (ACPR). To some, this might seem like a smooth sail. Yet, the journey is filled with vigorous checks on governance and financial health—an aspect understandable given the volatile nature of the crypto markets.
However, this journey towards wider cryptocurrency accessibility and operating freedom doesn’t sit well with everyone. Detractors argue that this might encourage recklessness in a relatively fledgling and highly volatile market. The quest for market proliferation, they argue, might result in overlooking the importance of regulation. Critics highlight that registration is a far cry from license, particularly in the world of digital assets.
Increasingly, France has grown to become a haven for cryptocurrency firms. The congenial regulatory environment, a pleasant combination of crypto profit tax cuts, and simplified registration processes with financial watchdogs certainly add to the appeal.
Looking ahead, the story of Hex Trust outlines a key narrative within the crypto sphere. It signifies the tug of war between being receptive to the growing clout of digital assets, whilst ensuring a sturdy regulatory framework. Reflecting on both these aspects, it’s clear that cryptocurrency’s path to conventional acceptance isn’t quite without its hurdles. Yet, this also highlights the intriguing journey that these digital assets must tread—a journey marked by constant evolution and gradual acceptance.
Source: Coindesk
