CACEIS Bank, the asset servicing arm of Crédit Agricole and Santander, has made headlines with its recent acquisition of a crypto custody license in France. As a crypto custodian, CACEIS aims to store users’ private keys, thereby increasing security for institutional clients.
The timing of CACEIS’s registration could not have been more crucial, as it now avoids being subject to France’s impending stricter regulations. Set to take effect in July, the new set of rules for digital assets providers in France demands strict compliance with Anti-Money Laundering measures, such as segregating customer funds and providing more detailed disclosures about risks and conflicts of interest.
However, these rules will not apply to CACEIS or the over 60 crypto firms registered under the AMF. For these companies, the European Union’s Markets in Crypto-Assets (MiCA) legislation, which comes into effect next year, will serve as the main governing framework.
On the one hand, obtaining a license from the Autorité des Marchés Financiers (AMF) showcases the bank’s continued commitment to expanding its services and value to its clients, offering them a secure means of storing and managing their digital assets. With assets under management valued at 2.4 trillion euros ($2.6 trillion), CACEIS proves itself to be a major player in the European asset servicing sector.
On the other hand, there is growing skepticism around exchanges and projects based in France. Among the 60+ crypto firms registered under the AMF, Binance has seen its local branch face a preliminary investigation since 2022. A report by French newspaper Le Monde states that Binance’s local arm has possibly engaged in money laundering activities and failed to comply with KYC (Know Your Customer) procedures, prompting action by the Paris Prosecutor’s Office.
Moreover, France has been tightening its grip on the cryptocurrency industry, introducing a bill to restrict local crypto companies’ use of influencer marketing. Penalties for non-compliance include imprisonment for up to two years, a fine of 300,000 euros ($328,000), and potentially banning the influencer.
In conclusion, the recent licensing of CACEIS in France highlights both the increasing institutional interest in cryptocurrency custody services and the country’s continuous efforts to regulate the space more strictly. As more regulations emerge, it will be vital for CACEIS and other French-based crypto businesses to navigate the complexities successfully to retain their current regulatory standings.
Source: Cointelegraph
