WebMoney is an online payment system. The company was founded in November 1998 in Russia as a money transfer system for US dollars, as a result of the Russian financial crisis in 1998, which led to an increase in US dollar usage in Russia.
WebMoney user resources are stored in a “wallet” that contains electronic money corresponding to an underlying asset, such as a currency. Underlying assets for WebMoney units are held by a global network of companies that are guaranteeing the payment system. Reinsurers accept deposits in underlying assets and issue corresponding WebMoney units. WebMoney Transfer can be used for peer-to-peer payments and includes a custody system. The fees are 0.8% of the amount realized, up to a maximum of EUR 50.
WebMoney Transfer services include the online exchange of INDX – an online tool that can be used to trade securities, called NOTES, which are secured by public company shares and other assets. Also, WebMoney Transfer has announced the addition of Bitcoin (BTC), Litecoin (LTC), Ether (ETH), Bitcoin Gold (BTG), Ripple (XRP), Dash (DASH), Monero (XMR) attached to its online INDX exchange.
In June 2013, the Ukrainian government seized computer equipment from a Ukrainian guarantor and froze 60 million UAH (7.5 million USD) of funds in guarantors’ accounts in Ukraine, causing the blocking of Ukrainian WebMoney transactions. Officials of the Ministry of Income and Obligations of Ukraine stated that there were major discrepancies in the activities of the company acting as a Ukrainian guarantor, and that the rules of operation of the payment system were not agreed with the National Bank of Ukraine. The ministry described WebMoney as an “illegal system” that was suspected of being used for money laundering and tax evasion, and the central bank said WebMoney was not licensed to operate in Ukraine. WebMoney transactions continued in Ukraine the following week.
In March 2015, bank accounts of a Ukrainian guarantor were issued after a court decision. Later that year, the National Bank of Ukraine and the State Savings Bank of Ukraine merged with WebMoney.UA.
In November 2015 CamMoney Europe Ltd, based in Cambridge, UK, was granted an FCA license to issue electronic money within the European Economic Area.
In 2015, WebMoney launched the WebMoney crowdfunding platform for voluntary donations, group purchase and event planning.