The third largest bank in Russia, Gazprombank, has announced that it is working on plans and will be conducting cryptocurrency transactions as a part of their pilot program through their Swiss subsidiary, in Switzerland later this year. The bank is planning to try out cryptocurrency transaction on a small-scale to see how it goes, in response to a large demand from their customers and several major private clients.
Gazprombank is not the only Russian bank to seek Switzerland’s ease in policy for earlier this year another Russian bank, Sberbank opened a blockchain lab to test blockchain projects after their request to set one up in Russia was denied. Sberbank also recently announced that they would be starting an exchange on Swiss soil.
Though Russia and its government officials are now drafting laws that legalize the use and trade of cryptocurrencies in the country, it wasn’t always this crypto friendly. The Russian President, Vladimir Putin, initially cracked down their use making it illegal to use, trade or hold in Russia citing it was not backed by a central regulatory body. The Russian Central bank still holds firm on their ban of cryptocurrencies even after the present government has announced that they are working towards legalizing them.
The said laws are proposing to set guidelines for the use and better understanding of initial coin offerings, cryptocurrencies, and all things blockchain. Briefly, in a meeting of all government officials, President Putin also expressed interest in the creation of the CryptoRuble, a government-backed cryptocurrency to find a way around US sanctions, that was later shot down by the finance ministry.
Russia the new crypto hub?
Since the softening of the government’s stance, crypto mining has mushroomed in the country. And there are reports that Dmitry Marinichev, is overlooking and is responsible for the setting up of the Russian Mining Centre.
He has gone on record and said that he hopes that the mining center will help and go a long way towards making his country a cryptocurrency power-hub. His partner and he have both invested $10 million into the project and through an ICO, have raised about $43 million.
With the Russian government becoming more and more crypto friendly, the appraisal in the Russian industrial sector is pouring in with every big name in Russia making statements in favor of cryptocurrencies and their adoption.
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