Bank of Russia proposes 1% capital cap on crypto-related exposures

The Bank of Russia has introduced a draft proposal to limit banks' exposure to crypto and foreign digital instruments to 1% of their capital. The regulation, which includes two new ratios, N31 for individual institutions and N32 for banking groups, covers direct investments, derivatives, and various credit instruments linked to digital assets. While the rules are still in draft form, they specify that customer custody positions are only included in the calculation if the bank or its depository bears the liability for potential losses.