Tough US trading climate

Bitcoin may be sliding in the US but a lifeline could be offered by an unlikely source: Russia.

Slower than expected growth of Microsoft’s Azure cloud software has rattled US investors in tech stocks, prompting a massive sell-off.

It usually follows that when tech stocks take a dive, crypto holdings like Bitcoin feel the pain as well.

This is because they are still considered a dangerous bet.

While Bitcoin price USD remains in the $84 000 bracket, there is serious concern that it could plunge dramatically.

Investors are favouring gold over Bitcoin largely due to fears over potential US conflict with Iran and possible inflation spikes.

Gold is a known as an asset that has held value throughout human history whereas Bitcoin is still perceived as an investment risk, irrespective of how well it might have performed in recent years.

The cryptocurrency is also losing investors to listed AI development companies, meaning it is fighting a battle for relevance on several fronts.

What remains in its favour is its status around the world, including Russia.

Russia formalising crypto

According to media reports, Russia is about to launch a comprehensive regulatory framework for crypto like Bitcoin.

A draft bill is expected to be tabled for a parliamentary vote in mid-2026.

If it passes, the framework will take effect in mid-2027.

Both qualified and non-qualified investors would have access to regulated Bitcoin and crypto trading.

However, there will be restrictions in place, particularly for non-qualified traders.

Russian state media outlet TASS has reported that their annual purchase would be capped at 300,000 rubles ($3,900).

Furthermore, the news agency said this category of traders would only be able to secure a limited set of the “most liquid” cryptocurrencies.

Qualified traders, on the other hand, will be allowed to trade cryptocurrencies in unlimited amounts.

The Central Bank of Russia is reportedly compiling a shortlist of approved cryptocurrencies, with a lawyer, Alexandra Fedotova, telling Bitcoin Magazine that Bitcoin would “definitely” be on the list.

He told the publication that additional legislation was planned to establish enforcement measures.

Born out of necessity

Russia’s seismic shift to cryptocurrencies is born as much out of necessity as it is the need for financial innovation.

Sanctions imposed by the West have meant that the country has had to explore other avenues for economic resilience.

Strategic cross-border partnerships have become a priority and crypto helps facilitate this process.

Simply put, Russia has no choice but to adopt crypto as soon as possible.

President Vladimir Putin is fully behind the transition too.

In December 2025, he told the annual Russia Calling investment forum that “no one can prohibit the use of Bitcoin”.

Western irony

There is no small degree of irony that Bitcoin may find success in Russia.

The state is notorious for keeping tabs on the activities of its citizens and generally suppresses innovations unless they are developed through government agencies

That Bitcoin is a Western creation that is gaining traction in Russia, whose relationship with the West has broken down to near-irreparable levels, is bizarre beyond words.