Gazprombank, a major state owned bank of Russia, has selected Switzerland as the destination to carry out pilot cryptocurrency transactions. The Deputy Chairman of the Board at Gazprombank, Mr. Aleksandr Sobol said Switzerland is chosen for the cryptocurrency transactions because of the liberal legislation for crypto.

The bank will initially carry out the transactions involving cryptocurrency on a small scale to meet the growing demand of the private clients for the digital currency. It is exploring the ways to service such clients.

The cryptocurrency transactions will be conducted towards the end of 2018 through its subsidiary Russische Kommerzial Bank AG based in Switzerland. Russische Kommerzial Bank AG was established in the year 1992. The bank intends to take advantage of the liberal regulations established by the alpine country.

The bank is currently engaged in framing the crypto currency procedures. It may take some for the bank to decide on extending the cryptocurrency transactions to the regular customers.

However, the bank has not taken the decision yet to conduct the transactions involving the Crypto in future for its esteemed clients. It has not yet decided to use the crypto for own investment as well.

The third largest bank in Russia, Gazprombank offers investment, corporate, retail and depository services. It also offers settlement and clearing services apart from dealing with forex instruments and securities.

Russia has not yet allowed the use of crypto for transactions on its soil. According to a communicative in January 2018, another major Russian Bank, Sberbank has chosen Switzerland to open a cryptocurrency exchange.

Russia is actively reviewing the crypto currency regulation and a final decision is expected in July 2018.

Swiss Financial Market Supervisory Authority Bans  Gazprombank From opening new accounts for Private Customers

FINMA, a Swiss Financial Market Supervisory Authority, has banned the Gazprombank (Switzerland) a month ago from opening the new accounts for the new private customers citing deficiencies in anti-money laundering procedures. According to FINMA, the bank has violated AML rules between 2006 and 2016. FINMA has staged the decision after investigating over 30 banks amid the revelations of Panama Papers.

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