Bank of Russia Proposes Margin Trading Regulations for Cryptocurrency
The Bank of Russia has prepared a draft directive to regulate margin trading of cryptocurrency in the country. The document outlines conditions under which brokers can accept cryptocurrencies and digital rights as collateral for margin positions, allowing clients to open short sales.
Currently, there are no clear boundaries for margin trading in Russia, and this new proposal aims to limit investor losses by forcing position closures when the risk becomes too high. This approach will also apply to non-qualified investors, who will be restricted from conducting cryptocurrency operations outside of the limits set by the Bank of Russia.
The draft directive also changes the procedure for calculating risk coverage ratios, adding cryptocurrencies and digital assets to the list of instruments that must be factored into portfolio evaluation. This will help brokers determine position limits and threshold levels for closing positions before losses exceed acceptable limits.