Russian Bank Offers Crypto Cross-Border Settlement Solution

Rosbank, one of Russia's major financial institutions, sanctioned by the United States, has become the first Russian bank to implement a cross-border cryptocurrency settlement solution.

Russian Bank Offers Crypto Cross-Border Settlement Solution

According to a local news article, the bank is currently conducting preliminary transactions with corporate and private clients. For Russian businesses to use this service, they must comply with Rosbank and B-crypto’s Know Your Customer (KYC) procedures. B-crypto is a Russian fintech service that provides technical assistance for cryptocurrency settlements, particularly emphasizing international payments using digital currencies.

The party importing goods must arrange cryptocurrency settlements and register the recipient’s cryptocurrency wallet to partake in cryptocurrency settlements. The supplier then sends the Russian company an invoice requesting payment in cryptocurrency, along with the wallet address.

Following this, an accord is reached between the importer and B-crypto, and the customer deposits fiat funds into a Rosbank account and applies to purchase cryptocurrency. The bank then transmits the funds to B-crypto, which buys cryptocurrency in cooperative nations and transfers it to the overseas vendor.

However, it is essential to note that cross-border cryptocurrency transfers, such as those being tested by Rosbank, may raise concerns regarding the potential evasion of sanctions in hostile countries. Numerous nations are implementing cryptocurrency transactions into their sanctions frameworks. Cryptocurrencies to circumvent sanctions may be deemed unlawful by these nations, resulting in potential legal repercussions for those involved in such operations.

Vladimir Chistyukhin, the First Deputy Chairman of the Bank of Russia, has stated that although cryptocurrencies will not serve as a universal solution for international payments, every effort must be made to investigate and implement all available methods for resolving transactions with foreign partners.

The State Duma is considering a bill to legalize cryptocurrency mining and establish experimental legal frameworks. Once these measures are adopted, the Central Bank intends to begin testing cross-border payments using cryptocurrency extracted by miners through authorized organizations.