While there is a buzz emerging in the Middle East and Hong Kong with emerging crypto hubs, do not overlook Europe. Specifically, France is making waves as a potential digital asset safe haven. Hex Trust just secured a license to offer digital asset custody and trading services.
From Hong Kong to Europe: Hex Trust Gets a License in France
The recent regulatory turmoil in the cryptocurrency industry has led many firms from the US and Europe to start relocating, among other places, to Hong Kong. This time, however, a firm from China's special administrative region has decided to move to Europe, thereby expanding its previous scope of activity.
Hex Trading, a digital asset custodian, has just obtained a license from France's Autorité des Marchés Financiers (AMF) and Autorité de Contrôle Prudentiel et de Résolution (ACPR). As a result, it can provide its cryptocurrency services in France. Previously, the company acquired a similar license allowing it to operate in the Italian market.
"Receiving the DASP registration from a major EU Regulator is an important vote of confidence and demonstrates our commitment to Hex Trust's ongoing expansion in Europe," commented Alessio Quaglini, the CEO and Co-Founder of Hex Trust. "The EU is a key market for Hex Trust, as we see strong growth potential and prepare for the European MiCA regulation , set up to regulate the digital asset industry in the region by 2024."
As new cryptocurrency market regulations come into force in Europe in 2023, some countries have begun to tighten legislation and set higher requirements for digital asset industry firms. As a result, Binance was forced to reduce its presence in Europe. What's more, the company faces a lawsuit over some potentially illegal activities in France which have been going on since 2022.
France, however, continues to offer favorable conditions for cryptocurrency companies, including a simplified registration process and tax cuts for companies operating in innovative industries. The Web3 sector is one of these industries.
Can France Become a European Crypto Hub?
The introduction of the Markets in Crypto Assets (MiCA), the new cryptocurrency regulations, has started to raise questions about the future of the crypto industry in Europe. However, even before the law was enacted, French authorities have taken steps to support the sector's development.
As part of the so-called 2030 plan, France has allocated €30 billion to develop the technology sector, including Web3. Since 2017, at least €1.3 billion has been raised in France to fund cryptocurrency projects.
Yet, France may encounter many foreign competitors on its way to becoming a crypto hub . Hong Kong has changed local laws for this purpose, and the United Arab Emirates (UAE) has recently issued a record number of licenses.
