Russia’s central bank moves to factor crypto risk into financial soundness rules

Russia’s central bank has released a draft rule that would require financial intermediaries, including brokerages, to reflect risks tied to cryptocurrency holdings when calculating financial soundness ratios. The measure would also apply to crypto exchange service providers. Under the proposal, brokerages, trust firms and foreign exchange dealers could include only cryptocurrencies approved for trading on exchanges in their regulatory capital calculations, and those assets could account for no more than 25% of the value of eligible assets. The assets would also have to be registered with a crypto custodian. The Bank of Russia said the aim is to incorporate crypto-related credit and market risks into capital adequacy assessments so firms hold enough capital to absorb potential losses.