Russia's Central Bank Proposes a 1% Capital Cap for Crypto Exposure

Odaily Planet Daily report: On September 18, the Central Bank of Russia released a draft proposing two ratios, N31 and N32, to measure relevant exposures based on the own funds of individual credit institutions and the consolidated capital of banking groups. The scope includes direct investments, derivatives linked to the price of crypto assets, and loans, bonds, and repurchase agreements whose settlement or value depends on crypto assets. Customer assets held in custody by digital custodians within the bank or group that bear losses will be included; assets not bearing losses will be excluded but subject to a 50% risk weight. Positions in proprietary accounts and customer positions for which the bank assumes responsibility will be subject to a 1250% risk weight. The draft is scheduled for official release in the fourth quarter of 2026, with effect 10 days after publication, and banks are expected to begin reporting N31 and N32 values starting January 2027.