The Bank of Russia has outlined draft prudential rules that would sharply limit how much cryptocurrency-related risk banks can take on as the country’s regulated crypto market develops. Under the proposal, a bank’s total exposure to cryptocurrencies and foreign digital instruments would be capped at 1% of its own capital.
The draft goes beyond direct token holdings. It would also apply to lending, derivatives, bonds, repo transactions, guarantees, credit lines and other instruments whose value or payments are linked to cryptocurrencies or foreign digital instruments.
Two ratios for banks and banking groups
The proposal creates two maximum risk ratios. N31 would apply to individual credit institutions, while N32 would apply to banking groups on a consolidated basis. In both cases, the ceiling is set at 1% of own funds.
By setting separate ratios for stand-alone lenders and for groups, the central bank is defining how crypto-linked risk should be measured across different banking structures. The draft is part of a broader prudential framework for lenders seeking to participate in the newly regulated market.
What counts toward the limit
The Bank of Russia’s approach captures a wide range of exposures rather than only coins held on a balance sheet. The 1% cap would include risks tied to loans, derivatives, bonds, repurchase agreements, guarantees and credit facilities when their value depends on cryptocurrencies or foreign digital instruments.
The draft also splits crypto-related transactions into two categories based on risk and liquidity. Group 2, which includes direct cryptocurrency investments and related positions, would carry a 1,250% risk weight. Some client positions would receive a 50% risk weight.
How breaches would be assessed
Banks would be expected to remain within the 1% threshold on every operating day. A temporary breach would not automatically amount to a violation triggering action, but repeated excesses could.
According to the draft, noncompliance and regulator-imposed measures could follow if the limit is exceeded on six or more operating days within any 30 consecutive days. For Group 2 exposure, the central bank would use the larger of a bank’s long or short position, a method designed to prevent full offsetting of opposite positions.
Implementation timeline
The reporting requirement for turnover and for the N31 and N32 ratios is expected to begin in January 2027. The regulation itself is set to take effect after its official publication, which is expected in late 2026.
That timeline marks the next confirmed step in the rollout. If adopted as drafted, banks entering Russia’s regulated crypto market would need to prepare systems to track daily exposure across a broad set of crypto-linked instruments under the new capital-based cap.
Source: crypto.news