{"id":564268,"date":"2026-09-20T14:35:19","date_gmt":"2026-09-20T13:35:19","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=564268"},"modified":"2026-09-20T10:48:18","modified_gmt":"2026-09-20T09:48:18","slug":"bank-of-russia-proposes-1-crypto-capital-cap-while-carving-out-some-client-custody","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/bank-of-russia-proposes-1-crypto-capital-cap-while-carving-out-some-client-custody\/","title":{"rendered":"Why Russia\u2019s harsh 1% crypto cap actually protects bank customer assets"},"content":{"rendered":"<p>The Bank of Russia has proposed a 1% crypto capital cap, limiting covered crypto and foreign-digital-instrument risk to a bank\u2019s own funds while leaving some client custody positions outside the new calculation.<\/p>\n<p>The <a href=\"https:\/\/www.cbr.ru\/eng\/press\/event\/?id=32858\">Sept. 18 proposal<\/a> would create N31 for individual credit institutions and N32 for banking groups on a consolidated basis. Each ratio compares covered exposure with the relevant institution\u2019s capital, not its total assets. The rules remain in draft form.<\/p>\n<p>The two-level structure subjects both a bank and its wider group to the same proposed percentage ceiling. N31 uses the individual institution\u2019s own funds, while N32 uses consolidated group capital, keeping the measurement tied to the entity that carries the covered risk.<\/p>\n\n<div class=\"cs-article-embed\">\n    <a href=\"https:\/\/cryptoslate.com\/sberbanks-crypto-wallet-plan-could-pull-russian-users-into-a-bank-controlled-on-ramp\/\" class=\"cs-article-embed__link\">\n        <div class=\"cs-article-embed__body\">\n            <span class=\"cs-article-embed__related-reading\">Related Reading<\/span>\n            <h3 class=\"cs-article-embed__title\">Russia\u2019s legal crypto on-ramp to arrive with a state-owned bank holding the keys<\/h3>\n        <\/div>\n        <span class=\"cs-article-embed__arrow\" aria-hidden=\"true\">\n            <i class=\"fa-light fa-arrow-up-right\"><\/i>\n        <\/span>\n    <\/a>\n<\/div>\n\n<h2>What the 1% crypto capital cap captures<\/h2>\n<p>The <a href=\"https:\/\/www.cbr.ru\/StaticHtml\/File\/41186\/260918-23-1.pdf\">draft regulation<\/a> reaches beyond coins held outright. Its numerator includes direct and indirect investments, derivatives tied to crypto prices, and instruments such as loans, bonds, guarantees, repos and credit lines when their settlement or value depends on crypto or foreign digital instruments.<\/p>\n<p>Banks would receive limited recognition for hedges. Long and short positions may be netted only within the draft\u2019s qualifying lower-risk category, which imposes conditions tied to the asset, settlement and maturity as well as freezing and liquidity risk. Direct holdings and other higher-risk exposures are measured more conservatively and cannot be fully neutralized by an offsetting position.<\/p>\n\n<div class=\"cs-article-embed\">\n    <a href=\"https:\/\/cryptoslate.com\/banks-get-cross-exchange-crypto-hedge-relief-under-canadas-new-2027-capital-rule\/\" class=\"cs-article-embed__link\">\n        <div class=\"cs-article-embed__body\">\n            <span class=\"cs-article-embed__related-reading\">Related Reading<\/span>\n            <h3 class=\"cs-article-embed__title\">Banks get cross-exchange crypto hedge relief under Canada\u2019s new 2027 capital rule<\/h3>\n        <\/div>\n        <span class=\"cs-article-embed__arrow\" aria-hidden=\"true\">\n            <i class=\"fa-light fa-arrow-up-right\"><\/i>\n        <\/span>\n    <\/a>\n<\/div>\n\n<p>The treatment of customer assets turns on who bears the loss if assets are seized or transactions are restricted. A custody position enters N31 or N32 when the bank, or a digital depository in its group, is liable for that loss. If the bank does not bear that responsibility, the client position is excluded from the two 1% ratios.<\/p>\n<p>That exclusion does not remove the position from prudential treatment. For covered bank and group capital-adequacy calculations, the draft assigns non-liable client custody positions a 50% risk weight. Own-account exposure and client positions for which the bank is liable receive a 1,250% risk weight.<\/p>\n<figure id=\"attachment_564310\" aria-describedby=\"caption-attachment-564310\" style=\"width: 1024px\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/09\/russia2.jpeg\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-564310 size-full\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/09\/russia2.jpeg\" alt=\"Diagram of Russia\u2019s proposed N31 and N32 bank crypto-risk boundary, showing what counts toward the 1% capital limit and when client custody remains outside it.\" width=\"1024\" height=\"576\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/09\/russia2.jpeg 1024w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/09\/russia2-300x169.jpeg 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/09\/russia2-768x432.jpeg 768w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2026\/09\/russia2-480x270.jpeg 480w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><figcaption id=\"caption-attachment-564310\" class=\"wp-caption-text\">Diagram of Russia\u2019s proposed N31 and N32 bank crypto-risk boundary, showing what counts toward the 1% capital limit and when client custody remains outside it.<\/figcaption><\/figure>\n\n<div class=\"cs-article-embed\">\n    <a href=\"https:\/\/cryptoslate.com\/outdated-bank-rules-may-keep-crypto-outside-the-banks-now-allowed-to-hold-it\/\" class=\"cs-article-embed__link\">\n        <div class=\"cs-article-embed__body\">\n            <span class=\"cs-article-embed__related-reading\">Related Reading<\/span>\n            <h3 class=\"cs-article-embed__title\">Outdated bank rules may keep crypto outside the banks now allowed to hold it<\/h3>\n        <\/div>\n        <span class=\"cs-article-embed__arrow\" aria-hidden=\"true\">\n            <i class=\"fa-light fa-arrow-up-right\"><\/i>\n        <\/span>\n    <\/a>\n<\/div>\n\n<p>The distinction permits custody without automatically treating every customer asset as the bank\u2019s own exposure, provided the institution does not bear the specified seizure or restriction liability. It simultaneously places a tight capital-based constraint on direct holdings and other crypto-linked risk carried by the bank.<\/p>\n<p>The ratios are part of Russia\u2019s <a href=\"https:\/\/www.cbr.ru\/develop\/cryptocurrency\/\">broader crypto-market rulemaking<\/a>, a framework CryptoSlate has previously described as <a href=\"https:\/\/cryptoslate.com\/russia-just-switched-on-a-crypto-market-that-doesnt-fully-exist-yet\/\">still being completed<\/a>. The central bank plans official publication in the fourth quarter of 2026, with the requirements taking effect 10 days later. Banks are expected to begin reporting instrument turnover and N31\/N32 values in January 2027, although detailed forms are still being developed.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The draft counts banks\u2019 own holdings and crypto-linked instruments against capital but conditionally excludes customer assets.<\/p>\n","protected":false},"author":1264,"featured_media":564275,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[76747,77968,11],"tags":[81073,76769,75195],"prediction_market_topic":[],"post_folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.9 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>1% crypto capital cap: Bank of Russia\u2019s proposal<\/title>\n<meta name=\"description\" content=\"Bank of Russia\u2019s proposed 1% crypto capital cap covers direct and derivative exposure plus liable 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