Gazprombank Launches Cryptocurrency Custody Services in Switzerland

Gazprombank’s New Crypto Venture

In a groundbreaking move, Gazprombank—one of Russia’s major private banks—has announced the launch of its cryptocurrency custody services via its Swiss subsidiary. Approved by the Swiss Financial Market Supervisory Authority on October 29, this marks a significant step for Gazprombank in the rapidly evolving digital asset landscape.

The Services Offered

Initially, the bank will offer custody and trading services exclusively for Bitcoin (BTC) to a select group of institutional and corporate clients. However, the strategy indicates that this could broaden in the future, with plans to integrate more cryptocurrencies and possibly related services. Gazprombank CEO Roman Abdulin expressed confidence in the growing relevance of digital assets, stating, “We expect digital assets to become increasingly important in the global economy and, in particular, for our current and potential clientele.”

Regulatory Compliance: A Must

As part of the regulatory framework in Switzerland, Gazprombank is obliged to adhere to Anti-Money Laundering (AML) laws and Know Your Customer (KYC) regulations. This not only legitimizes its offerings but also enhances trust among clients navigating the tricky waters of cryptocurrency investments. Additionally, the bank will implement its own due diligence processes to ensure compliance and security for its clientele.

A Backstory of Preparation

This isn’t Gazprombank’s first dance with the crypto world. The bank has been laying the groundwork for cryptocurrency services since 2018, indicating a long-held vision for its role in the financial ecosystem. It’s rather telling of how traditional banking institutions are adapting to the digital economy, even as the home country exhibits a less enthusiastic stance toward cryptocurrencies.

The Contrast within Russia

While Gazprombank takes a bold step forward, it operates in a country where the government is decidedly skeptical of cryptocurrencies. Earlier in October, Russian State Duma member Anatoly Aksakov voiced that decentralized cryptos like Bitcoin may not have a bright future in Russia’s financial landscape. This contrasting perspective raises questions about the future trajectory of cryptocurrency in Russia and how banks like Gazprombank will navigate these challenges.