Crédit Agricole and CACEIS Bank, the asset services arm of Santander, have obtained cryptocurrency custody licenses in France, as announced on the French regulator's website on June 20. CACEIS, a prominent European asset services provider, offers a range of services to institutional clients, including clearing, fund administration, and middle office outsourcing. With the new custody license, CACEIS will enhance the security of institutional clients by safeguarding their private keys.
As of December 2021, CACEIS had an impressive 4.6 trillion euros ($5.06 trillion) in assets under custody and 2.4 trillion euros ($2.6 trillion) in assets under management, solidifying its position in the financial industry. To offer custody services in France, companies are required to undergo a registration process mandated by the French stock market regulator, the Authority Financial Markets (AMF). This registration requirement also applies to other crypto-related businesses, including digital asset trading platforms.
CACEIS managed to secure its registration before the implementation of stricter regulations set to take effect in July. These forthcoming regulations will enforce more rigorous anti-money laundering measures, such as ensuring the segregation of client funds and providing compre hesive disclosures on risks and conflicts of interest However, CACEIS and over 60 other cryptocurrency firms registered with the AMF will be exempt from these new rules. Instead, they will be governed by the EU Markets in Cryptoassets (MiCA) legislation, which is scheduled to be implemented next year.
Among the cryptocurrency companies registered with the AMF is Binance, whose local branch has been under preliminary investigation since 2022. The exchange has been accused of non-compliance with "know your customer" procedures and potential involvement in money laundering, according to the Paris prosecutor's office. In response to increasing scrutiny, France has been tightening its regulatory framework for cryptocurrency businesses. Notably, a recent bill aims to restrict the use of influencer marketing by local cryptocurrency firms, with penalties including imprisonment of up to two years, fines of 300,000 euros ($328,000), and the potential prohibition of influencers promoting such companies.
The acquisition of cryptocurrency custody licenses by Crédit Agricole and CACEIS reflects the growing recognition of the importance of secure storage solutions for digital assets. These licenses will enable the banks to play a more active role in the evolving crypto lands cape, providing enhanced services and bolstering confidence among institutional clients in France.
