Russian Central Bank announces new banking regulations to limit cryptocurrency investment risks, including derivative exposures.
Regulation & Gov ·
The Central Bank of Russia announced new banking regulations designed to restrict risks tied to cryptocurrency investments, covering both direct holdings and derivative exposures. Credit institutions will be required to comply with standards limiting exposure to digital currencies and foreign digital instruments, according to a regulatory proposal released by the bank. The framework accounts not only for outright crypto positions but also financial instruments whose payoffs depend on digital currency valuations.
The regulations establish a maximum risk ratio of 1 percent for cryptocurrency and foreign digital instrument transactions at both solo and consolidated levels, designating these metrics as H31 and H32 respectively. Low-risk assets with physical liquidity will permit offsetting of opposing long and short positions. Client positions where the bank bears no responsibility for sanctions risk exposure are excluded from the calculation.
Reporting on these instruments and the new ratios is scheduled to begin in January 2027, with detailed reporting forms still under development. The regulations are expected to take effect in the fourth quarter of 2026, becoming binding ten days after official publication. The scope and enforcement mechanisms for institutions operating across jurisdictions remain to be clarified in the final rule.