The Bank of Russia has proposed capping banks’ total risk from cryptocurrencies and foreign digital instruments at 1% of their capital as it sets prudential limits for lenders entering the country’s newly regulated crypto market.
Summary
- Bank of Russia has proposed limiting banks’ total risk from cryptocurrencies and foreign digital instruments to 1% of their capital.
- The proposed rules cover direct crypto holdings, derivatives and other linked instruments, while allowing certain lower risk positions to be offset.
- Crypto exposure and certain client positions would carry a 1,250% risk weight, while some excluded client positions would receive a 50% risk weight.
- Banks…
