Bank of Russia Allows Crypto Assets as Capital with Strict Limits
Approved cryptocurrencies can be included in capital calculations, others treated as full risk.
1Capital Contribution of Approved Cryptos
According to the Bank of Russia's draft regulation, brokers and asset managers can only include Bitcoin, Ethereum, and USDT traded on Russian exchanges and held in Russian digital depositories in their capital calculations. These crypto assets can constitute up to 25% of qualifying capital. Other crypto assets will not be considered in capital calculations.
2Risk Weighting for Unlisted Cryptos
The regulation imposes strict rules for crypto assets not traded on organized markets. These assets will be fully deducted from capital adequacy ratio calculations and subject to a 100% risk weight, assuming they could become completely worthless. For listed cryptos, twice the clearing organization's determined risk rate will be applied.
3Capital Adequacy Ratio Limit
The draft introduces a separate limitation for capital adequacy ratios. If a company's holdings of listed crypto assets exceed 25% of its capital, the excess will be deducted as a concentration penalty. This rule aims to prevent financial institutions from excessive exposure to crypto assets. Qualified investors are exempt from these limitations.
4Completion of Legal Framework
This draft follows Federal Law No. 282-FZ, which came into force on August 4. The law defines market infrastructure such as digital asset exchanges and depositories and authorizes the Bank of Russia to make such regulations. Most provisions will take effect on September 1, 2026, while exchange and custody licenses will become effective on July 1, 2027.
5Crypto CFD Approval for Forex Companies
On July 9, the Bank of Russia approved a new Basic Standard allowing licensed forex companies to offer crypto CFDs to qualified investors. This decision shows the gradual expansion of the regulatory framework for the crypto market. However, CFDs fall outside the scope of this draft regulation.
6Comment Period and Effective Date
Comments on the draft regulation will be accepted until August 29. If adopted without changes, the rules will take effect 10 days after official publication. This process gives industry stakeholders an opportunity to provide feedback on the final shape of the regulation. The regulation represents a significant step in Russia's approach to crypto assets.
7Comparison with Global Regulatory Trends
Russia's crypto regulation approach differs from the EU's MiCA regulation and the US's fragmented approach. The Russian model includes crypto assets in capital calculations in a limited way, while some Western regulations completely exclude these assets from capital. Russia's model aims to provide controlled access to the crypto market while maintaining financial stability.
8Potential Impacts on the Industry
This regulation may cause financial institutions in Russia to reconsider their crypto asset strategies. The capital contribution of approved cryptos could increase demand for assets like Bitcoin and Ethereum. However, classifying other crypto assets as full risk might deter institutional investors from entering this space. The regulation is part of Russia's efforts to control the crypto market.