Russia proposes 25% cap on crypto holdings for financial market participants

Cryptocurrency holdings face tighter prudential requirements as proposed rules introduce eligibility criteria and a new limit for regulated financial intermediaries.

The Bank of Russia has published a draft regulation that sets prudential requirements for professional market participants, including brokers, trustees, foreign‑exchange dealers, and cryptocurrency exchanges, when accounting for cryptocurrency holdings in their equity calculations.

Under the draft, crypto assets may be included in equity calculations only if they have been admitted to trading on exchanges and are registered with state‑approved crypto depositories, allowing authorities to verify their existence. The value of such holdings would be limited to 25% of the total equity used in the relevant calculations.

The Bank of Russia explained that the ratio will be used to assess credit and market risks and to ensure that firms can cover potential losses, adding that ‘Owing to the new approach, the ratios will factor in cryptocurrency‑related risks and help ensure intermediaries’ financial resilience in cryptocurrency transactions’.

The regulation follows the State Duma’s comprehensive cryptocurrency legislation, which permits both qualified and non‑qualified investors to trade cryptocurrencies. The framework also allows crypto assets, including stablecoins, to be used for certain cross-border settlements, while restricting their use as an internal payment method.