Russia's central bank is moving to cap bank exposure to crypto at 1% of capital while officials say the broader legal framework for digital assets could be completed before the end of 2026. The proposed prudential rules, published as draft regulation by the Bank of Russia, would set two maximum risk ratios: N31 for individual credit institutions and N32 for consolidated banking groups. Both ceilings would be limited to 1% of an institution's or group's own funds, and banks would have to comply every operating day.
The draft covers not only direct holdings of cryptocurrencies and foreign digital instruments, but also loans, derivatives, bonds, repos, guarantees, credit lines and other instruments whose value depends on digital assets. The central bank has divided exposures into two groups. Group 1 includes qualifying cash-settled exchange-traded derivatives, certain over-the-counter derivatives and instruments with counterparties meeting specified credit standards. Some transactions with cryptocurrency miners can also qualify if tied to income from digital asset sales. Group 2 captures direct crypto investments, loans settled exclusively in crypto, certain repos and derivatives that do not qualify for Group 1.
Under the proposed capital treatment, aggregate crypto exposure and certain client positions where the bank assumes responsibility would carry a 1,250% risk weight. Client positions where banks are not responsible for sanctions-related seizure or restriction losses would be excluded from the N31 and N32 limits and instead receive a 50% risk weight for capital adequacy purposes. Crypto assets could not be counted as collateral when banks calculate provisions for possible losses, and derivatives tied to crypto would carry a 36% risk factor. The central bank plans to introduce reporting for covered turnover and the N31 and N32 ratios from January 2027, with the regulation expected to be published in Q4 2026 and take effect 10 days after publication.
Separately, Central Bank First Deputy Governor Vladimir Chistyukhin said on Sept. 21 that the country's crypto industry could begin operating legally before the end of the year if remaining regulatory work stays on schedule. Regulators are preparing 27 subordinate acts, including seven first-tier measures and 20 second-tier rules. Six of the seven initial acts have already been sent to the Justice Ministry. The framework covers registries, qualification requirements, digital depositories and a whitelist of eligible assets. Non-qualified investors have an annual purchase limit of ₽300,000 through a single intermediary and may access Bitcoin, Ethereum and Tether's USDT, while qualified investors can trade without an amount limit after testing.
The Bank of Russia has already set capital requirements for digital depositories at between ₽50 million and ₽250 million depending on activities, and proposed rules for margin trading. Sberbank has targeted a Dec. 1 launch for crypto trading infrastructure covering trading, custody, settlement and digital depository services, while Alfa Bank has been testing cryptocurrency trading through its Alfa Investments brokerage application. The regulator has also identified cryptocurrencies and stablecoins as a financial market risk, citing concerns they could be used as substitutes for the ruble and repeating the possibility of complete investment losses.
