Credit Agricole’s CACEIS, a joint venture with Santander that provides asset servicing mainly to asset managers, insurance companies, pension funds, banks, private equity, and real estate funds, has recently registered as a digital asset services provider in France. According to the Autorité des Marchés Financiers (AMF) website, CACEIS registered on June 20. The bank currently has around 4.6 trillion euros (over $5 trillion) in assets under custody.
France has shown a generally welcoming attitude towards cryptocurrency providers. However, it is essential to note that the country voted in favor of implementing stricter licensing requirements under the new EU rules in March. The European Union (EU) recently adopted the Markets in Crypto Assets (MiCA) framework aiming to establish a comprehensive regulation for cryptocurrencies in Europe. MiCA seeks to implement environmental safeguards, supervisory provisions, and consumer protections in the digital asset space. It also mandates that crypto-asset service providers register with the relevant national authorities to serve EU clients.
In May, the European Securities and Markets Authority encouraged firms to register their cryptocurrency products in preparation for the official MiCA launch.
Meanwhile, Binance, one of the largest cryptocurrency exchanges, is also registered with the French watchdog since May last year. However, recent reports allude to Binance facing investigations from French authorities. In response, the company commented that it had received an on-site visit from the authorities and confirmed its adherence to all laws in France and other markets it operates in.
The registration of CACEIS as a digital asset services provider is a step forward in legitimizing the rapidly evolving cryptocurrency market. However, it raises questions of potential conflicts between the traditional financial services offered by such institutions and the decentralized nature of digital assets. As regulations in the space materialize, clarity on this matter will be crucial for the industry’s growth.
In conclusion, the French market continues to show openness to the adoption of digital assets and related service providers. However, with stricter licensing requirements coming into play, the cryptocurrency market must balance decentralization with regulations to remain in the good graces of the authorities. For firms like CACEIS and Binance, their registration with the AMF demonstrates a level of commitment to compliance, a key component in securing the trust of users and regulators.
Source: Blockworks
