[Russian Central Bank Proposes 1% Capital Limit on Banks' Crypto Exposure, Partial Custody Exemptions] According to a report by CryptoSlate on September 21, the Russian Central Bank released a draft on September 18 proposing to limit banks' exposure to covered crypto assets and foreign digital instruments to within 1% of their own capital. The draft introduces two ratios, N31 and N32, measured respectively based on the own funds of individual credit institutions and the consolidated capital of banking groups. The exposure includes direct investments, derivatives linked to crypto prices, as well as loans, bonds, repos, or settlements whose value depends on crypto assets. Whether customer custody is included depends on who bears the loss if assets are seized or trading is restricted: exposures are included if the bank or a digital custody institution within the group is responsible, but excluded if they are not, though still subject to a 50% risk weight. Positions held in proprietary accounts and customer holdings for which the bank is responsible are subject to a 1250% risk weight. The draft is planned for official release in the fourth quarter of 2026, taking effect 10 days after publication, with banks expected to start reporting N31/N32 values from January 2027.