Exposure Capped at 1% of Capital: Russia's Central Bank Moves to Regulate Banks' Crypto Asset Risk Measurement

Odaily News: The Central Bank of Russia published a draft on September 18 proposing two ratios, N31 and N32, to measure relevant exposures based on each individual credit institution's own funds and banking group consolidated capital, respectively. The scope of calculation includes direct investments, derivatives linked to crypto asset prices, and loans, bonds, and repos whose settlement or value depends on crypto assets; customer custodied assets for which a bank or a digital custodian within the group bears losses will be included, while assets for which no losses are borne will not be included but will still be subject to a 50% risk weight. Positions held in own accounts and customer positions for which the bank bears responsibility are subject to a 1250% risk weight; the draft is planned for official release in Q4 2026, taking effect 10 days after publication, with banks expected to report N31 and N32 values starting from January 2027.