• Rosbank, one of the largest banks in Russia, is offering cross-border crypto payments despite a nationwide ban.
• The bank is collaborating with Russian fintech service B-Crypto to provide a technical solution for customers to do so.
• Customers must make arrangements with the supplier and indicate the wallet from which they will pay before processing the transaction.
Rosbank Offers Cross-Border Crypto Payments
Russia’s Rosbank, one of the country’s most important financial institutions, has announced that it is set to become the first major bank to offer cross-border transactions in cryptocurrency. Despite strict regulations on cryptocurrency use within Russia, Rosbank emphasized that these transactions are in full compliance with existing legislative requirements, Central Bank guidelines, and its own compliance policy.
B-Crypto Technical Solution
The bank is partnering with Russian fintech service B-Crypto to provide a technical solution for customers who wish to pay foreign suppliers in cryptocurrency. This process requires customers to first make arrangements with their supplier and indicate the wallet from which they will pay. Once this is done, an invoice including all necessary information such as amount due and payment address will be issued by the supplying company for processing.
Strict Compliance Requirements
In order for these payments to be successfully processed through Rosbank, all parties involved must adhere strictly to anti-money laundering (AML) laws as well as other compliance policies set forth by both Rosbank and its partner B-Crypto. In particular, customers must satisfy KYC/AML criteria before they can use any services offered by either company. Finally, all payments made using cryptocurrencies must also be reported within 24 hours following completion of each transaction in order for them to remain compliant with existing regulations.
Despite having stringent restrictions on cryptocurrency use in Russia, Rosbank has taken a groundbreaking step by allowing its customers access to cross border crypto payments. However recourse should be taken when making any crypto related purchase or investment as there are still many risks associated with it due to lack of regulation and oversight over this new technology.