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Are Russian Banks Ready to offer Banking Solutions to Crypto Market?

Are Russian Banks Ready to Offer Banking Solutions to Crypto Market?

There are at least two big banks from Russia, .e. Alfa Bank and Sberbank, are showing interest towards offering trading solutions in respect of cryptocurrencies. However, the two banks are cautious and want to restrict their focus to the ‘most reliable’ virtual currencies. The bank’s project is in accordance with the regulations of the country’s central bank that seeks every participant to register with it in the digital currency market.

Not To Ignore

Both the Russian banks are not ready to ignore the cryptocurrency market altogether. Therefore, Sberbank private banking’s deputy director, Anna Ivanchuk, indicated that his bank was keen to provide its clients a complete transparent type of entry into digital coins. At the same time, such offers should meet the requirements of the regulator so that it could invest in an interesting product in the country. Similarly, Alfa-Bank MD of product development, Anton Rakhmonov, thinks that it is only a question of time before the digital assets become an international phenomenon. He also indicated that his bank did not want to ignore it.

He said that the objective is to pick up the pace of a decision in respect of the CFA investment assets recognition. He also wanted to do the same thing in respect of legal field concerning the virtual currency market. According to a report in cryptovest.com, the two banks are not likely to put any digital currency into the clients’ hands directly.

Currently, there is no clarity as to which of the six digital currencies would be added into the platform of the two banks. However, Kommersant, a local media, indicated that Bitcoin, Ethereum, Bitcoin Cash, and Litecoin are part of it. Incidentally, these four virtual currencies represent 75 percent of the overall market. The two banks are reportedly keen on using Bitsmap or Kraken, which are audited virtual currencies, for enabling its clients to buy and sell cryptocurrencies.

AddCapital managing partner, Alexei Prokofiev, reacted to comment, “The client actually receives a fund unit. The assets backing these funds are stored using custody solutions and audited by Group IB cybersecurity. The unit is liquid, so it is possible to request a withdrawal from the client’s currency at any time.” The company provides infrastructure to these two banks. Incidentally, the commercial banks in the country seem to be among the first to think about offering solutions to digital coin sector.

Pending Bills

Though there are different tones from different people in Russia on the question of the digital currency market, the country is making its efforts in regularizing the market. For instance, the Legislature is planning to pass at least three bills in connection with the virtual currency market in the current month itself or latest by July 1.

Most recently, Vladimir Putin, the Russian President, indicated that cryptocurrency could not be termed as a secured one. This is the same stand taken by its central bank. The country is also keen to address a number of issues like tax code for the digital coin sector apart from the issues that global community is facing.

About the author

J. Todd Ring

Todd is an Independent researcher, writer and social commentator. He is the author of “Enlightened Democracy: Visions for a New Millennium.” He basis his focus on ICO’s and new developments.

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