French Crypto Custody Licensed to Santander and Crédit Agricole’s Asset Arm

CACEIS Bank Granted Crypto Custody License in France

CACEIS Bank, a subsidiary of Crédit Agricole and Santander, has been granted a crypto custody license in France, as per the announcement made by the regulatory authority on June 20th.

CACEIS asserts that it is a preeminent European asset servicing provider, providing services ranging from clearing and fund administration to middle office outsourcing for asset managers, insurance firms, brokers, pension funds, and real estate funds, among other customers. As a crypto custodian, CACEIS will keep users’ private keys, thus enhancing security for institutional clients.

According to the bank’s website, as of December 2021, CACEIS had assets under custody of 4.6 trillion euros (equivalent to $5.06 trillion) and assets under management of 2.4 trillion euros (equivalent to $2.6 trillion).

The Autorité des Marchés Financiers (AMF), the French stock market regulator, requires companies looking to provide custody services to register with them. Additionally, digital assets trading platforms are also obliged to register with the AMF.

The promptness of CACEIS’ enrollment enabled the organization to bypass the newly implemented, stringent regulations. In July, France will implement a new set of regulations for digital asset providers, necessitating organizations to adhere to stricter Anti-Money Laundering criteria, such as segregating customer funds and providing more comprehensive disclosures about risks and potential conflicts of interest.

CACEIS and the more than 60 crypto firms registered with the AMF are exempt from these new rules. Companies that have registered with the AMF will be subject to the European Union’s Markets in Crypto-Assets (MiCA) legislation that will be implemented in the coming year.

France Implements Stricter Regulations for Crypto Businesses

Among the crypto companies registered with the AMF is Binance. According to a report from the French newspaper Le Monde, the local arm of Binance has been under preliminary investigation since 2022. Apparently, the exchange has not followed Know Your Customer procedures and may have been involved in money laundering activities, as stated by the Paris Prosecutor’s Office.

In recent months, France has been implementing stricter regulations on crypto businesses. A new bill was recently passed that prohibits crypto companies in the country from utilizing influencer marketing. If these regulations are not followed, it could lead to a two-year prison sentence and a fine of up to 300,000 euros ($328,000), and may also result in a ban on influencers.

Magazine: Ranking of Nations with the Best and Worst Crypto Tax Systems, Plus Tax Advice for Cryptocurrency Owners.