Santander, Crédit Agricole asset arm receives French crypto custody license

CACEIS Bank, the possession servicing arm of Crédit Agricole and Santander, has gotten a crypto custody license in France, according to the regulators site on June 20. CACEIS claims to be a European leader in asset servicing, offering services from clearing and fund administration to middle workplace outsourcing for possession managers, insurance provider, brokers, pensions and real estate funds, to name a few clients. As a crypto custodian, CACEIS will store users private keys, thereby increasing security for institutional customers. According to the banks site, CACEIS had 4.6 trillion euros ($ 5.06 trillion) in assets under custody as of December 2021, while properties under management stood at 2.4 trillion euros ($ 2.6 trillion). The French stock market regulator, the Autorité des Marchés Financiers (AMF), requires business preparing to provide custody services to obtain registration. Other crypto companies, consisting of digital properties trading platforms, are also subject to the registration requirement. The timing of CACEIS registration permitted the business to avoid brand-new more stringent regulations. A brand-new set of guidelines for digital possessions companies in France will take effect in July, demanding firms to adhere to tighter Anti-Money Laundering steps, such as guaranteeing consumer funds are segregated, and providing more in-depth disclosures about dangers and disputes of interest.CACEIS Bank registration with the Autorité des Marchés Financiers (AMF). Source: AMFThese new guidelines do not apply to CACEIS and the more than 60 crypto firms signed up with the AMF. Business that have actually registered with AMF will be governed by the European Unions Markets in Crypto-Assets (MiCA) legislation that enters into effect next year.Among the AMF-registered crypto companies is Binance. According to a report published in the French paper Le Monde, Binances regional arm has actually been under preliminary investigation since 2022. The exchange reportedly stopped working to adhere to Know Your Customer treatments and perhaps participated in money laundering activities, according to the Paris Prosecutors Office.France has actually been tightening up guidelines on crypto services in current months. One of the most current advancements is a costs limiting regional crypto business from using influencer marketing. Penalties for failure to abide by the law include up to 2 years imprisonment and a 300,000 euro ($ 328,000) fine, with the possibility of an influencer restriction as well.Magazine: Best and worst countries for crypto taxes– Plus crypto tax pointers

Other Questions People Ask

What does the French crypto custody license mean for Santander and Crédit Agricole's asset arm?

The French crypto custody license allows CACEIS Bank, the asset servicing arm of Santander and Crédit Agricole, to legally provide custody services for cryptocurrencies in France. This development enhances the security of institutional clients by enabling CACEIS to store private keys securely. With this license, CACEIS can now cater to a growing demand for crypto asset management while adhering to regulatory requirements set by the Autorité des Marchés Financiers (AMF).

How does CACEIS Bank's crypto custody service enhance security for institutional clients?

CACEIS Bank's crypto custody service enhances security by storing users' private keys, which are essential for accessing and managing cryptocurrencies. This service is particularly important for institutional clients who require robust security measures to protect their digital assets. By obtaining a custody license, CACEIS demonstrates its commitment to safeguarding client funds while complying with regulatory standards in France.

What are the implications of new regulations for crypto companies in France following CACEIS's licensing?

The new regulations set to take effect in July will impose stricter Anti-Money Laundering measures on crypto companies in France, including requirements for segregating customer funds and providing detailed disclosures. However, since CACEIS has already registered with the AMF, it will not be subject to these new rules. This strategic timing allows CACEIS to operate under existing regulations while positioning itself as a leader in the evolving crypto custody market.

How does CACEIS Bank's registration with the AMF compare to other crypto firms in France?

CACEIS Bank's registration with the AMF places it among over 60 other crypto firms that have complied with regulatory requirements in France. Unlike some firms facing scrutiny, such as Binance, CACEIS has successfully navigated the licensing process, allowing it to offer custody services without immediate compliance with the new regulations. This positions CACEIS favorably in the competitive landscape of crypto asset management in Europe.