The Bank of Russia wants to limit the amount banks effectively risk in cryptocurrency operations. This refers to potential losses if a digital asset sharply depreciates, becomes blocked, or the bank cannot recover invested funds. Such risk should not exceed 1% of the credit institution's or banking group's capital.
This means it's not just about direct purchases of Bitcoin, Ethereum, and other digital currencies. Financial instruments whose value or payments depend on cryptocurrency exchange rates will also be included in the calculation. If the bank itself assumes potential losses on such a position, it will be taken into account in the new limit.
The Central Bank's approach is quite strict: a risk weight of 1250% is proposed for such assets. Simply put, the regulator requires banks to proceed from a scenario where cryptocurrency investments can be almost completely lost, and to have sufficient capital reserves in advance for such a case.
However, some operations will not be considered. For example, if the bank only conducts a client transaction and does not bear the risk of possible blocking or loss of the asset itself. For some liquid instruments, netting of opposite positions will also be allowed – for example, if one bet is on price growth and the other on a decline.
The new rules will affect banks with universal and basic licenses, non-bank credit organizations, and banking groups. From January 2027, they will have to separately report such operations and the values of the new standards in their statements.
In other words, the Central Bank does not prohibit banks from working with cryptocurrency but wants to ensure that a possible collapse or blocking of digital assets cannot significantly impact the bank's stability.
Read more on the topic:
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- CBR Reveals Details of Future Cryptocurrency Regulation: Unlicensed Operations to Become Illegal from 2027
- Bitcoin, Ethereum, and USDT to be listed on Russian exchanges: Central Bank proposes opening trading