The National Bank of the Kyrgyz Republic has authorized financial institutions to open special escrow accounts for virtual assets. The bank reported.
It is noted that this is necessary for transactions with cryptocurrencies and tokens.
The National Bank has amended the Board Resolution «On Approval of Instructions for Working with Bank Accounts and Bank Deposit Accounts» dated October 31, 2012, No. 41/12.
This document now provides for the opening of escrow accounts for virtual assets.
An escrow account is a banking instrument that ensures the security of settlements between a buyer and a seller. The transfer of funds is carried out only upon the fulfillment of pre-agreed conditions.
How it works: the buyer places funds in a special account, and the right to receive them passes to the seller only after all obligations under the contract have been fulfilled. The banking institution acts as an impartial arbitrator, monitoring compliance by both parties.
Escrow accounts can be used to transfer not only money but also securities and various movable assets.
