• Russia’s Rosbank has become the first major bank to offer cross-border crypto payments despite a nationwide ban on cryptocurrency.
• The bank is collaborating with fintech service B-Crypto, which provides a technical solution for customers to participate in digital currency transactions.
• These transactions must comply with existing legislative requirements and the Central Bank’s guidelines.
Russia’s Rosbank Offers Cross-Border Crypto Payments
Russia’s Rosbank, one of the country’s largest financial institutions, has announced that it will begin offering cross-border payments in cryptocurrency. This move comes despite an ongoing nationwide ban on cryptocurrencies and other digital assets.
Collaboration with B-Crypto
To facilitate these payments, Rosbank is partnering with Russian fintech service B-Crypto. B-Crypto provides a technical solution that allows customers to make digital currency transactions across borders in compliance with existing laws and regulations set forth by the Central Bank of Russia.
Process for Making Payments
The process for making these payments is complicated but follows certain steps. First, companies wishing to pay for imported goods or services in cryptocurrency must make arrangements with their supplier and indicate which wallet they will be paying from. The supplier then issues an invoice specifying the amount due and the address of the receiving wallet where payment should be sent. Upon receipt of payment, B-Crypto records it on its blockchain platform and issues confirmation documents to both parties involved in the transaction.
Compliance Requirements
Rosbank insists that these transactions are conducted strictly within legal boundaries as defined by current legislation and Central Bank regulations. All transactions carried out through this process must adhere to anti money laundering (AML) standards established by law enforcement agencies and government entities worldwide.
Conclusion
In spite of an ongoing nationwide ban on cryptocurrency activities in Russia, Rosbank has managed to provide a workaround solution allowing customers to make cross border payments using digital currencies such as Bitcoin (BTC). This move signals that even though crypto may not be embraced officially at present, there are still ways around restrictions for those who wish to explore opportunities within this space.