CACEIS Bank, the asset servicing arm of Crédit Agricole and Santander, has been granted a crypto custody license in France, according to the regulator's website on June 20.
CACEIS claims to be a European leader in asset services, offering services from clearing and fund administration to intermediate office outsourcing for asset managers, insurance companies, brokers, pension funds and real estate, among other clients. As cryptocurrency custodian, CACEIS will store users' private keys, thus increasing the security of institutional clients.
According to the bank's website, CACEIS had 4.6 trillion euros (5.06 trillion dollars) in assets under custody as of December 2021, while assets under management amounted to 2.4 trillion euros (2.6 billions of dollars).
The French stock market regulator, the Autorité des Marchés Financiers (AMF), requires companies planning to offer custody services to apply for registration. Other cryptocurrency businesses, including digital asset trading platforms, are also subject to the registration requirement.
The timing of the CACEIS registration allowed the company to avoid new, stricter regulations. A new set of rules for digital asset providers in France will take effect in July, requiring companies to comply with stricter anti-money laundering measures, such as ensuring customer funds are segregated and providing more detailed disclosures. on risks and conflicts of interest.
These new rules do not apply to CACEIS and the more than 60 crypto companies registered with the AMF. Companies that have registered with the AMF will be governed by the European Union's Cryptoactive Markets legislation (MiCA), which will come into force next year.
Among the crypto companies registered with AMF is Binance. According to a report published in the French newspaper Le Monde, the local arm of Binance has been under preliminary investigation since 2022. The exchange reportedly failed to comply with its Know Your Customer procedures and possibly engaged in money laundering activities, according to the Paris Prosecutor's Office.
France has been tightening rules on crypto companies In recent months. One of the most recent developments is a bill that restricts local crypto companies. of the use of influencer marketing. Penalties for breaking the law include up to two years in prison and a €300,000 ($328,000) fine, with the possibility of banning influencers as well.
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