Bank of Russia proposes 1% crypto risk limit

• Russia’s central bank has proposed a 1% limit on banks’ cryptocurrency and foreign digital-instrument risk.
• The draft rules would cover direct holdings, crypto derivatives and other crypto-linked exposures.
• Banks would begin reporting the relevant ratios from January 2027 if the rules take effect.

The Bank of Russia has proposed limiting banks’ cryptocurrency and foreign digital-instrument risk to 1% of their own funds.

The proposed N31 ratio would apply to individual banks, while N32 would apply to banking groups on a consolidated basis.

The central bank has said the new ratios will cover direct investments, cryptocurrency derivatives and other qualifying digital-instrument exposures.

The draft allows banks to offset some long and short positions when the assets have low freezing and liquidity risks.

Client positions would remain outside the ratios when the bank is not responsible for losses caused by sanctions-related restrictions or asset seizures.

The Bank of Russia has planned to introduce the requirements after their expected publication in the fourth quarter, with banks due to report turnover and N31 and N32 values from January 2027.

The proposed rules form part of Russia’s wider framework for regulated cryptocurrency activity, which has expanded since the country’s new crypto legislation took effect on September 1.