Russia Proposes 25% Crypto Holding Cap for Financial Market Participants
The Bank of Russia has proposed a draft regulation that sets prudential requirements for professional market participants, including brokers, trustees, foreign-exchange dealers, and cryptocurrency exchanges. The new rules would limit crypto holdings to 25% of total equity used in calculations.
The regulation aims to assess credit and market risks by factoring in cryptocurrency-related risks. This approach is designed to ensure that firms can cover potential losses and maintain their financial resilience in cryptocurrency transactions.
The move follows the State Duma's comprehensive cryptocurrency legislation, which permits both qualified and non-qualified investors to trade cryptocurrencies. The framework also allows crypto assets, including stablecoins, to be used for certain cross-border settlements, while restricting their use as an internal payment method.