CACEIS, the asset service arm of banking giants Credit Agricole and Santander, has been licensed for crypto custody by French regulators.
CACEIS Bank, which serves asset managers such as insurers, pension funds and private equity, was registered with France’s Financial Markets Authority (AMF) as of Tuesday, June 20, according to the regulator’s website.
Traditional Finance Firms Step into the Crypto Industry
As the European Union prepares to implement new crypto licensing rules known as MiCA from 2024, other traditional finance firms such as Societe Generale and AXA Investment are joining for recognition under one of the most advanced crypto regulatory frameworks in Europe.
With $5.1 trillion in assets under its management, CACEIS is reportedly aiming for crypto regulatory status since 2021. Registration with the AMF is mandatory for those providing crypto custody, clearing or trading services in France. Binance, the world’s largest crypto exchange, is currently under investigation by French authorities for allegedly serving illegally before gaining approval in 2022.
This step taken by CACEIS is the last move of traditional financial companies that are interested in entering the crypto market.
Earlier this week, Deutsche Bank announced it was seeking a crypto custody license in Germany, and the world’s largest asset manager BlackRock applied last week to operate an exchange-traded fund tied to the Bitcoin price. The European Central Bank has asked banks to hold high levels of prudential capital for assets it deems risky, but a survey released by the regulator in February found the risks of crypto activities to be insignificant.
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