Russia's central bank proposes 1% capital cap on banks' crypto risk
- —Ratio N31 applies to an individual bank's capital, N32 to a group's consolidated capital
- —The calculation includes direct and indirect investments, crypto-price derivatives, loans, guarantees and repos
- —Client custody positions are outside the cap if the bank is not liable for their loss
- —Such positions carry a 50% risk weight, while own and accountable positions carry 1,250%
Why it matters: The rules set a hard capital barrier for Russian banks' crypto exposure and will determine how banks can hold client digital assets.
Source: CryptoSlate