Banque Delubac & Cie is proud to announce the appointment of Xavier Gomez, co-founder and Managing Director of Invyo, to its Supervisory Board.
Founded in 1924, Banque Delubac & Cie is an independent financial institution. Bold in its development strategies and constantly reinventing itself, it focuses on high value-added niche businesses. Today, it is present in several financial fields: wealth management, support for companies in difficulty, banking for real estate professionals, asset management, investment banking, corporate banking, retail banking and correspondent banking.
Proactively adapting to future challenges and the needs of its customers, Delubac & Cie has been the 1st French bank authorized to offer cryptoassets since April 2022.
Joël-Alexis Bialkiewicz
Managing Partner of Banque Delubac & Cie
« Xavier Gomez’s appointment is fully in line with the Bank’s strategy. A recognized figure in finance and the Web3, he bridges the gap between our family heritage as an independent niche bank and our positioning as an innovative player in decentralized finance. His assertive vision and sharp expertise in the broad spectrum of our business areas will be key to realizing our ambition. »
Xavier Gomez
Member of the Supervisory Board of Banque Delubac & Cie
« I am delighted and honored by this appointment at a time when Banque Delubac & Cie is celebrating its centenary. My background as a former international banker and current fintech entrepreneur reflects my ability to bridge the gap between past and future, to converge traditional finance and the emergence of cryptoassets. I see a fairly obvious parallel with Banque Delubac & Cie’s unique and special history, and look forward to putting my skills to work in support of its strategy. »
Adan (the Association for the Development of Digital Assets), KPMG France, and Ipsos have just unveiled a new study on the French appetite for crypto-assets and Web3. Delubac & Cie was pleased to partner once again in the execution of this analysis.
Conducted for the third consecutive year, this study reveals the democratization and ever-growing interest of the French and Europeans in digital assets. NFTs are also gaining significantly in popularity.
12% of French people own crypto-assets (up from 9.4% last year), and 15% have owned them at some point. The majority of crypto-asset holders already possess traditional financial products and see this new asset class as an opportunity for diversification.
The bank emerges as the preferred contact for French people who want to buy, sell, and store crypto. More than 20% choose a banking intermediary over self-custody. 23% of French people even say they are ready to switch banks to access crypto services.
For Web3 sector companies, finding banking partners remains complex for more than half of those surveyed (57%).
It’s no secret that our Corporate Banking division supports Web3 companies in their development projects through a comprehensive banking offer and expert commercial teams.
At the presentation of the results held at the Ministry of Economy and Finance on March 19, 2024, Joël-Alexis Bialkiewicz, managing partner at Delubac & Cie, spoke about the opportunities and challenges in the field.
Some see a contradiction between our status as a bank and our crypto activity. But since 1924, we have been the bank for those who cannot or do not want to have a bank. […] We take pride in being the bank of the crypto world. We will continue to do what is necessary to ensure that everything permitted by law can never be prohibited by a small number of private actors.
Find below the full speech by Joël-Alexis Bialkiewicz at the Ministry of Economy and Finance.
Watch a video of Joël-Alexis Bialkiewicz, managing partner at Banque Delubac & Cie, speaking at an event organized by ADAN (Association for the Development of Digital Assets) and KPMG at Bercy. The association presents its study “Web 3 and Crypto in France and Europe: Public Adoption and Applications in Industries”.
Addressing the Banking Needs of Web 3 and Crypto Businesses
Our managing partner, Joël-Alexis Bialkiewicz, who has been mining Bitcoin since 2011 and is also the founding president of the mobile payment fintech DeluPay, discusses the state of the French crypto ecosystem and its perception. Regulation, taxation, diplomacy…: he reviews the actions needed for France to become the global financial hub for decentralized finance. These issues, thus addressed, will contribute to changing the current perception towards a relationship of trust necessary for the full adoption of crypto assets in France.
The need for reassurance through crypto regulation
45 %1 of French people believe that France imposes too many regulatory constraints on the cryptocurrency industry (crypto-assets or digital assets) or that France is still not incentivizing enough to develop the cryptocurrency industry.
“However, the risk of overly stringent regulation is that it could deprive French companies of a new mode of financing, stifle innovation, and drive quality projects away from French territory,” says Joël-Alexis Bialkiewicz.
Enhanced DASP registration
The status of Digital Asset Service Provider (DASP) is a regulatory status introduced by the French PACTE law (Action Plan for Business Growth and Transformation) for providers of services related to digital assets. It aims to regulate the market by authorizing and supervising the activities of service providers in the field of crypto-assets:
buying
selling
safekeeping of digital assets on behalf of their clients.
As of July 1, 2023, the DDADUE law (Provisions for Adaptation to the Law of the European Union) strengthens the obligations of future PSANs who have not filed a complete registration request with the AMF. New companies must comply with new rules and requirements regarding the safekeeping and cybersecurity.
European MiCA regulation and CASP approval
The European regulation on Markets in Crypto-Assets (MiCA) establishes a harmonized regulatory framework at the European level for crypto-assets, including digital asset service providers since its adoption in April 2023. It can be seen as an extension or evolution of PSAN, as it aims to strengthen regulation and supervision of actors operating in the crypto-asset domain. Registered PSANs will indeed have to become CASP (Crypto Assets Service Providers) by 2026 to address the European market.
Regulation has primarily focused on combating money laundering and terrorist financing. Yet, illicit activities represent only 0.15 to 0.24% of cryptocurrency transactions, a proportion significantly lower than that of FIAT currencies.
Protecting users is another aspect of necessary regulation if we want to facilitate access to these digital assets. Indeed, an appropriate regulatory framework must accompany these technological evolutions for mass adoption.
Did you know? Banque Delubac & Cie is the first French bank to obtain its PSAN registration (Digital Asset Service Provider).
The Need for a Convergence Between Crypto and Traditional Finance
Various scandals and crypto scams have undoubtedly tarnished the image of the Blockchain revolution and provoked distrust:
bankruptcy of marketplaces (MtGox, FTX),
hacks on decentralized bridges (Harmony, Nomad, Wormhole, Ronin),
ICOs that are difficult to audit and for which the AMF’s approval remains optional,
market manipulation facilitated by the low liquidity of most tokens.
Nonetheless, the evolution of the markets has not affected the adoption of cryptocurrencies (crypto-assets or digital assets) by the French, which showed a growth of 20% in 2023.1 In parallel, the convergence between traditional finance and the digital asset industry is progressing with trading volumes in digital assets predominantly institutional.
70% of crypto companies report having had difficulties in accessing banking services, such as simply opening a bank account.2
Did you know?Delubac Corporate Banking supports players in the crypto-assets and web 3 ecosystem in the corporate part of their activities.
Work is needed with public authorities to facilitate the declaration of crypto assets in tax returns. Currently, it is up to each individual to perform this complex calculation and declare it, unlike traditional financial assets which are declared by intermediaries.
The diplomatic aspect of crypto
Welcoming foreign players makes France a global platform in the field of crypto. To fully seize the opportunities of this constantly evolving sector, French players also need support to spread beyond our borders.
“France is ahead and capable of becoming the global financial hub for decentralized finance and making its mark worldwide. There are still some steps to overcome. It’s up to all of us to make this possible!” Joël-Alexis Bialkiewicz
Source : 1 & 2. ADAN & KPMG Study, 2023, Web3 and crypto in France and Europe: adoption by the general public and applications in industries.
Elodie Trevillot, Deputy General Manager of Risk and Controls at Banque Delubac & Cie, raises the question of the compatibility between banks and crypto. Opportunities, challenges, and the deconstruction of prejudices related to digital assets are at the heart of this presentation, which was also featured during the France Générosités webinar “Cryptocurrencies validated by our trusted third parties” in October 2023.
The Benefits of Blockchain for Banking
Blockchain offers several advantages such as speed, transparency, increased security, and simplification of compliance processes. Specifically, the interest of banks in offering services related to digital assets and blockchain now seems indispensable to meet user needs.
Cross-border Payments
Blockchain technology offers many advantages for cross-border payments: fast and economical. Indeed, payments are instantaneous even when geographical borders are involved. Moreover, the costs associated with transfers can be significantly reduced by avoiding currency conversion fees and high costs of international transfers.
Credit Management
Blockchain is a source of opportunities for the syndicated loan market, from mandate management to servicing and tokenization. The elimination of intermediaries and the immediacy of transactions allow a reduction of the granting process from several days to a few hours. For example, JP Morgan’s ONYX platform and BBVA’s syndicated loan platform for businesses. Companies can benefit from a faster and more efficient credit process, allowing them to obtain funding more quickly for their financing needs.
Management of Financial Instruments
The tokenization of assets is a real challenge for economies of scale. Indeed, representing physical or financial assets as digital tokens on a blockchain allows:
reduction of delays thanks to the instantaneity of the blockchain, thus eliminating the processing delays often encountered by traditional systems,
elimination of intermediaries, thus reducing associated delays and costs,
cost reduction through the automation of processes, reduced delays, and intermediaries.
Growing Interest of the French in Crypto
Digital assets are increasingly present in the minds of the French. In 2023, no less than 85% of the French had already heard of these new forms of investment. This growing popularity is confirmed with 26% of the French declaring their intention to acquire digital assets in the future. Moreover, it is interesting to note that 13% of French people over 18 years old have already owned digital assets, such as NFTs or stablecoins. Digital assets are truly emerging as a new asset class that is attracting the interest of the French.
Nearly 30% of people would be ready to switch banks for an institution offering services in digital assets.
Faced with this enthusiasm, banks must understand the importance of adapting to these new uses and seizing the many opportunities offered by this technological innovation. This data highlights the importance for banks to rethink their offerings and provide tailored banking and financial solutions to meet the expectations of their clients and remain competitive in the constantly evolving financial market.
Adaptation of Banks to Digital Assets
To meet the new uses and needs of clients, banks must adapt by evolving:
Regulatory framework: to offer services related to digital assets in France, banks must obtain a registration or approval as a Digital Asset Service Provider (PSAN),
Internal mechanisms: towards new tools, training of employees, awareness of new challenges, etc., to meet the specificities of digital assets,
Risk policy: to integrate the specificities of digital assets (volatility of cryptocurrencies, decentralization of blockchains, cybersecurity, regulatory compliance).
Banque Delubac & Cie supports players in the crypto-assets and web 3 ecosystems to seize the opportunities of this new asset class.
Opportunities for Banking Services Related to Crypto
The growing popularity of cryptocurrencies in France and the possibilities offered by blockchain technology open real opportunities to offer services tailored to client needs.
Management of the Conservation of Digital Assets
Many individuals wish to rely on a trusted third party to ensure the secure conservation of their digital assets. Banks, for their part, have solid technological infrastructures that could meet these needs, particularly in terms of cybersecurity. With their experience in protecting traditional financial assets, banks are well-positioned to offer these services. Their expertise in risk management, regulatory compliance, and data protection can be extended to digital assets. Banks can thus play an essential role in offering reliable and secure digital asset conservation solutions, meeting individuals’ expectations for trust and protection of their investments.
Management of Crypto Asset Purchases and Sales
Banks already have mechanisms to meet client needs in digital assets, particularly through their experience in managing transactions related to financial securities. The key principle in this area, “best execution,” aims to ensure that transactions are carried out in the most advantageous way for clients, considering criteria such as price, speed, and security of execution. This principle is naturally applicable to this new asset class.
Crypto Investment Advisory
Banks already offer value-added services such as investment advice, wealth engineering, etc. In the evolving market and technologies, many clients express the need for advice on investing in digital assets, as part of diversifying their exposure. Indeed
, cryptocurrencies, tokens, and NFTs are gaining popularity as a full-fledged asset class. Naturally, clients are looking to take advantage of this new investment opportunity while needing expertise in this complex environment.
Deconstructing Prejudices Related to Crypto Assets
Mistrust towards crypto-assets largely stems from past scandals and a lack of understanding of this innovative technology, often perceived as complex.
The majority of crypto assets are used legally
The increasing use of crypto-assets for illicit purposes remains below 1% since 2019.
Regulation has aligned the anti-money laundering obligations of digital asset service providers with those of banks:
obligations to know the customer
constant monitoring of operations to identify those with an unusual or illicit character
direct link with the authorities via an obligation to report to TRACFIN (Treatment of Intelligence and Action against Clandestine Financial Circuits)
At the European level, requirements will be standardized with the implementation of the MiCA Directive (Markets in Crypto-Assets). At the international level, regulation governing digital assets tends to become stricter.
Blockchain does not promote anonymity
The blockchain is public. Indeed, it is a distributed ledger system, transparent and accessible to all, where transactions are recorded immutably and verifiable by all network participants. Pseudonymity is common on the blockchain, not to be confused with anonymity. Authorities can even trace transactions back to individuals holding public addresses as in the Silk Road or Bitfinex cases. Thus, authorities have begun to identify IP addresses that are linked to money laundering or sanctions circumvention circuits (USA, UK, OFAC).
Crypto assets are not the preferred tool of money launderers
The main AML-CTF risks come from the use of specific tools or decentralized platforms:
Mixers: they break the link between the origin address of the transaction and the destination address to ensure the anonymity of certain transactions;
Decentralized platforms: they do not meet the requirements of regulated platforms and do not always apply rules reducing the risk of money laundering;
Anonymous assets: digital assets such as Monero or Zcash emphasize the anonymity of transactions. Unlike traditional cryptocurrencies like Bitcoin, they are not recorded on a public blockchain, and the senders, recipients, and transferred amounts are masked.
Blockchain-specific AML-CTF tools
Blockchain analysis tools complement existing customer knowledge and business relationship monitoring tools. The most commonly used blockchain analysis tools, such as Chainalysis, Coinfirm, Scorechain, or TRM, now have more than 5 years of seniority and are capable of:
multifactorial analysis: entity (the Exchanges), addresses, and transactions.
integration of risk management rules specific to each user (for example, country risk, high-risk sectors)
extending the analysis on certain blockchains up to 1000 hops
identifying risks (for example, identifying mixers)
The features and use of these tools are subject to analysis by authorities in the context of PSAN registration and approval requests.
Sources:
ADAN KPMG Study, 2023, Web 3 and Crypto in France and Europe: adoption by the general public and applications in industries.
Chainalysis 2023 Report
The fourth edition of this unmissable event dedicated to Bitcoin in France is taking place in Biarritz from 23 to 25 August 2023. Banque Delubac & Cie is once again proud to be a partner of this prestigious event. Our Managing Director of Delubac Corporate Banking for Companies, Professionals and Associations will take the floor on Thursday 24 August 2023. Three days of conferences, workshops, round tables in a convivial atmosphere and a magnificent setting. Surfin‘Bitcoin 2023 is organised by StackinSat, at Casino Barrière Biarritz, facing the ocean: the ideal place for professionals from the bitcoin ecosystem to encounter fellow enthusiasts.
Surfin’bitcoin in Biarritz, the unmissable event for bitcoiners
Created in 2020, Surfin‘Bitcoin takes its name from “surfing” referring not only to the dynamic and fun sport, but also to the conference venue, a famous destination for French surfers. As for bitcoin, the subject is quite clear and leaves no doubt about the themes that will be addressed. This prestigious event is an opportunity to meet experts from industry, finance and economy, entrepreneurs, investors and enthusiasts. A true exchange platform combining innovation and conviviality, Surfin‘bitcoin is an event conducive to partnerships and the growth of the sector in Europe. Up to 1,500 participants are expected at Casino Barrière in Biarritz.
The 2023 conference programme
Two stages with conferences both in French and English. 80 hours of discussions including 40 hours of workshops led by more than 70 speakers. The topics covered are:
Tech and research
Business and regulation
Sécurity and safeguarding
Training and information
Economy and geopolitics
Banque Delubac & Cie, crypto-friendly
Surfin‘Bitcoin brings together the Bitcoin ecosystem and the world of traditional finance. On this occasion, Denis Meilhon, Managing Director ofDelubac Corporate Banking for Companies, Professionals and Associations, will take the floor on Thursday 24 August at 4:30 p.m. on the French-speaking stage on the subject “How to serve as a bridge between traditional and decentralised finance: the example of Banque Delubac & Cie, crypto-friendly”. Banque Delubac & Cie is the first banking institution registered as a Digital Asset Service Provider, and supports web3 and crypto-asset players on the corporate part of their activities.
Banque Delubac & Cie, the first French bank authorised to offer a crypto-asset service.
Banque Delubac & Cie has obtained its registration as a DASP (Digital Assets Service Provider) with the AMF (Financial Markets Authority) and the ACPR (French Prudential Supervision and Resolution Authority). It is about to officially launch its offer for the purchase, sale and custody of crypto-assets for institutions, businesses and individuals.
Banque Delubac & Cie therefore becomes the first French bank to offer this type of service.
The offer will be aimed primarily at companies wishing to invest part of their cash in crypto-assets, at institutions wishing to offer a secure digital asset custody service for their clients and finally, at individuals wishing to buy, sell and hold crypto-assets. The service offered by the Delubac & Cie bank will make it possible to invest in crypto-assets with the highest possible level of security.
Each client portfolio will correspond to a separate private key; under no circumstances will client assets be pooled.
Initially, the first three digital assets offered will be Bitcoin, Ethereum and Tezos. This offer will make it possible to invest in digitised or tokenised real assets as well as NFTs (Non-Fungible Token) and to have access to staking. Other digital assets will be made available to clients based on demand.
Banque Delubac & Cie is the first French bank registered as a Digital Asset Service Provider1.
1 Banque Delubac & Cie’s offer relating to digital assets is governed by its registration with the AMF under number E2022-33. This offer does not fall within the services covered by the bank’s authorisation as an investment services provider.
