Russia Imposes 25% Crypto Cap on Market Professionals' Accounts

Russia's Bank of Russia has proposed a new draft regulation that would limit the role of cryptocurrencies in market professionals' accounts. The rule sets a 25% threshold for digital assets considered in the calculation of equity, affecting brokers, managers, forex dealers, and crypto exchange platforms.

The new regulation comes after the opening of the Russian market to Bitcoin, Ether, and USDT, allowing these assets to be included in the calculation of equity. However, only certain cryptocurrencies that have been admitted for trading on a Russian organized market can be considered, and they must also appear in the accounts of a recognized crypto custodian.

The Bank of Russia wants to ensure that intermediaries have enough capital to absorb losses and avoid overexposed balance sheets. Cryptos will now enter the calculation of market risk and credit risk, impacting the ratios used to measure a broker's financial strength.

Russia has changed its stance on digital assets in recent months, with crypto transactions becoming legal within a regulated framework. New exchanges and custodians can obtain licenses, and traditional brokers are given a place in the system.