CACEIS Secures Coveted Crypto Custody License in France

• French regulators have granted a crypto custody license to CACEIS, the asset servicing arm of banking giants Credit Agricole and Santander.
• The license allows CACEIS Bank to provide services to asset managers such as insurers, pension funds, and private equity.
• Other traditional finance firms like Societe Generale and AXA Investment are also seeking recognition under the European Union’s new crypto licensing rules, known as MiCA, which will come into effect in 2024.

French financial regulators have granted a crypto custody license to CACEIS, the asset servicing arm of banking giants Credit Agricole and Santander. The license allows CACEIS Bank to provide services to asset managers such as insurers, pension funds, and private equity. Other traditional finance firms like Societe Generale and AXA Investment are also seeking recognition under the European Union’s new crypto licensing rules, known as MiCA, which will come into effect in 2024.

Traditional Finance Firms Entering the Crypto Sector

As the European Union prepares to implement new crypto licensing rules known as MiCA from 2024, traditional finance firms like Societe Generale and AXA Investment are seeking recognition under one of the most advanced crypto regulatory frameworks in Europe. CACEIS, which has $5.1 trillion in assets under management, has reportedly been targeting crypto regulatory status since 2021. In France, registration with the Financial Markets Authority (AMF) is mandatory for those providing crypto custody, clearing, or trading services. Binance, the world’s largest crypto exchange, is currently under investigation by French authorities for allegedly operating illegally before obtaining approval in 2022.

The move by CACEIS is the latest in a series of traditional finance firms expressing interest in entering the crypto market.

Earlier this week, Deutsche Bank announced that it was seeking a crypto custody license in Germany, and the world’s largest asset manager, BlackRock, applied last week to operate a Bitcoin price-linked exchange-traded fund. The European Central Bank has called on banks to hold a high level of precautionary capital for assets it deems risky, but a survey published by the regulatory body in February indicated that the risks associated with crypto activities were insignificant.