Russian Central Bank caps bank exposure to crypto at 1% of capital

Starting in January 2027, lenders must comply with two primary risk ratios: N31 for individual institutions and N32 for banking groups. The 1% limit applies to the institution’s own funds and encompasses a broad spectrum of instruments, including direct holdings, derivatives, loans, and guarantees linked to digital asset performance. Regulators will strictly monitor compliance, with potential enforcement actions triggered if a bank breaches the threshold on six or more operating days within any 30-day window.

To manage this transition, the central bank has categorized transactions based on liquidity and sanctions-related risks. Assets in the first group, which include certain exchange-traded derivatives and instruments settled in rubles or currencies from friendly nations, allow for limited position offsetting. Conversely, direct investments and non-qualifying derivatives fall into a second, more restrictive group where netting long and short positions is prohibited. Capital adequacy rules further penalize this activity, assigning a 1,250% risk weight to aggregate crypto exposures. These requirements arrive as major players like Sberbank and Alfa Bank accelerate their own infrastructure projects, signaling a cautious integration of digital assets into the formal Russian financial system.