Bank of Russia Limits Crypto Equity to 25% for Market Brokers

Bank of Russia Limits Cryptocurrency Holdings to 25% for Regulated Market Participants

The Bank of Russia has issued a new draft regulation ruling on the requirements that professional market participants must follow when including cryptocurrency holdings in their balance sheets.

According to the new ordinance, professional market participants such as brokers, trustees, forex dealers, and cryptocurrency exchanges will have to include cryptocurrency holdings when calculating their equity holdings. These crypto assets, which can be included in these balances if they have been admitted to trading on exchanges, can reach a prudential limit of 25% of the total equity value declared.

Also, to be included in these calculations, cryptocurrency holdings must be registered with crypto depositories, allowing the state to verify their existence.

As for this ruleset’s purpose, the bank explained that this ratio will be observed to assess credit and market risks and will ensure these companies can cover potential losses.

“Owing to the new approach, the ratios will factor in cryptocurrency-related risks and help ensure intermediaries’ financial resilience in cryptocurrency transactions,” the bank concluded.

The move is seen as a continuation of the legalization of cryptocurrencies in Russia, opening the doors for users to assess the solidity of regulated market participants based on their crypto holdings, but also marks the start of a deeper state oversight era, increasing vigilance on the operators’ internal crypto dealings and maintaining a limited involvement of cryptocurrency assets in the Russian economy.

This draft regulation follows the State Duma’s approval of comprehensive cryptocurrency regulation, allowing both qualified and non-qualified investors to trade cryptocurrencies in the country, but limiting the latter to buy up to 300,000 rubles, about $3,800, per year.

Even so, the use of cryptocurrencies as an internal payment method is prohibited, while exporters and importers can still use them in cross-border settlements without limitations, enabling them to leverage stablecoins and other digital assets to sidestep the risks of secondary sanctions legally.