Switzerland (and Russia?) are getting closer to the crypto world

By Roberto D. | CryptoFarm | 4 Nov 2020

Gazprombank, a Swiss credit institution, part of the Russian bank Gazprom (third largest bank in Russia), has received the green light from the local authorities to be able to provide its cryptocurrency services to institutional clients.

According to a press release dated 29 October, therefore, the Swiss branch of Gazprombank has effectively obtained the authorization of the Federal Financial Market Supervisory Authority (FINMA) to provide custody and trading services of cryptocurrencies to a limited number of institutional and corporate clients, exactly two years after the preparatory stages for offering similar services in Switzerland.

According to what has been announced, customers will initially be allowed to trade Bitcoin against fiat currencies, with BTC therefore being the only supported cryptocurrency for the moment. Gazprombank, however, plans to add concrete support to more cryptocurrencies, as well as welcome more institutional and corporate clients.

Additionally, clients will be able to securely hold their bitcoin holdings in the bank's institutional grade custody solutions. In particular, the secure storage of clients' assets will be provided by a bank regulated by the Swiss authorities, thus minimizing the counterparty risk.

Gazprombank CEO Roman Abdulin is optimistic about the potential of digital currencies, so much so that he commented saying he expects digital assets to become increasingly important in the global economy and, in particular, for current and potential customers.

The announcement also notes that the bank is using unique approach software and due diligence strategies to improve security and ensure compliance with Swiss anti-money laundering laws and regulations and knowledge of client laws and regulations. .

In this context, it is curious to note that although the third largest bank in Russia by assets, Gazprombank, is establishing a cryptocurrency business abroad, the Russian government has never loved Bitcoin, so much so that the opinions expressed several times by the executive of Moscow (including Vladimir Putin) are negative.

However, the fact that some recent regulatory introductions that in Russia aim at hindering "Bitcoin & friends" are actually preparatory moves to pave the way for its own currency, the digital ruble, cannot be ruled out.

The number 1 of the Russian central bank, Elvira Nabiullina, recently indicated that various consultations are already underway and that pilot tests for the digital ruble will begin by the end of 2021.

What do you think of it? Is it good that banks are getting closer to cryptocurrencies? Is it just an attempt to centralize decentralized currencies?

Let me know yours in the comments and as always, thank you for making it this far. To the next!