Bank of Russia proposes 1% crypto exposure limit for banks

Russia’s central bank has outlined strict capital and exposure rules for lenders participating in the country’s regulated crypto market.

The Bank of Russia has proposed limiting banks’ total exposure to cryptocurrencies and foreign digital instruments to 1% of their own funds. The new draft rules would introduce separate risk ratios for individual credit institutions and banking groups, covering direct holdings as well as loans, derivatives, bonds, repo transactions, guarantees, and other crypto-linked instruments.

The proposed framework would divide crypto-related exposures into two risk groups, with different rules for calculating long and short positions. Group 1 would cover certain derivatives and transactions meeting specified conditions, while Group 2 would include direct investments in cryptocurrencies and other higher-risk exposures. Banks would have to remain within the 1% limit on every operating day.

The draft also proposes a 1,250% risk weight for aggregate crypto exposure and certain client positions for which banks assume responsibility. Cryptoassets and foreign digital instruments would not qualify as collateral when calculating provisions, while derivatives linked to them would carry a 36% risk factor. Reporting on the covered instruments and risk ratios is planned from January 2027.