Russian bank Gazprombank will start operations with a select group of clients who already have funds in BTC. The entity must comply with anti-money laundering (AML) and know-your-customer (KYC) measures to operate in the territory.
Gazprombank, which is Russia’s third-largest bank by net assets, will launch its own institutional-level cryptocurrency custody and trading service in Switzerland. The bank’s subsidiary, Gazprombank Switzerland, which received approval from the country’s financial authority, will be in charge of coordinating the initiative.
The Russian bank issued an official statement in which it highlighted that its new product has received approval from the Swiss Financial Market Supervisory Authority (FINMA). In that text, they said that this new service will be aimed mainly at institutional and corporate customers. The bank, which manages USD 2 billion in Switzerland, plans to enter the Bitcoin trading and custody market. Besides, they seek to increase the supply of other cryptocurrencies later on.
Initially, the company will operate with a limited group of customers who already own funds in BTC. Likewise, the service will comply with all the anti-money laundering (AML) and know-your-customer (KYC) regulations that FINMA requires for its proper operation. The authorities also require the bank to have a good security infrastructure to safeguard the assets of its users.
Gazprombank CEO Roman Abdulin made comments along those lines. He said that they expect “digital assets to become increasingly important in the global economy,” particularly for their current and potential customers. The bank has been working on the development of this service since 2018. At that time, they announced that they would conduct the first tests on transactions with cryptocurrencies.
It is important to note that the Russian government has a closed and uncompromising stance on the cryptocurrency market. However, the business group behind Gazprombank has been very interested in participating in that market. For example, energy giant Gazprom, the parent company that represents this bank, has also ventured into the development of a blockchain network for use in the supply of gas.
Russia’s private sector is much more open to new financial technologies than national authorities. However, the restrictions on the cryptocurrency industry that exist in the country are very strict. For that reason, some large companies are betting on Bitcoin outside its borders to take advantage of the opportunity that this market currently offers.
The growing interest in cryptocurrencies has led to the creation of institutions that focus on safeguarding and trading these types of assets. In recent days, financial group Avanti followed Kraken as the second cryptocurrency-focused company to receive a license in the United States. That title gives them the same authority as the country’s banks.
The largest bank in Singapore and Southeast Asia is also planning to launch a platform for trading Bitcoin and other cryptocurrencies. The name of this institution would be DBD Digital Exchange and it would allow the use of various fiat currencies, and cryptocurrencies. They recognize that these financial assets are ready to be the future of the digital economy of the future.
By Alexander Salazar
