Bank of Russia adds cryptocurrency to prudential norm calculations for regulated exchanges and brokers, capping crypto at 25% of asset value.
Regulation & Gov ·
The Bank of Russia has incorporated cryptocurrencies into prudential norm calculations for regulated financial market participants including exchanges, brokers, asset managers, and forex dealers. Under the new framework, these entities may only include cryptocurrencies that are permitted for trading on exchanges, and crypto assets are capped at no more than 25% of total asset value. Digital currencies counted toward this threshold must be registered with crypto depositories.
This regulatory move integrates digital assets into existing financial stability requirements that professional market participants must meet. By setting a ceiling on crypto exposure relative to overall assets, the measure constrains the proportion of a firm's balance sheet that can be allocated to cryptocurrency holdings while still maintaining compliance with prudential standards. The requirement that only exchange-approved and depository-registered digital currencies qualify narrows the scope of what assets qualify for inclusion.
It remains unclear whether this framework will be extended to other categories of market participants, or how the 25% threshold will be monitored and enforced across the industry. The practical impact on trading volumes and institutional participation in Russian crypto markets has not been specified.