Key Takeaways
- Putin acknowledges Bitcoin’s resilience, emphasizing its immunity to suppression and its potential amid economic sanctions.
- Russia recently introduced Bitcoin and crypto tax reforms, exempting VAT and capping personal income tax on earnings at 15%.
- New laws permit Bitcoin and crypto use in foreign trade, with regulations on cross-border payments expected by year-end.
Putin Highlights Bitcoin’s Role Amid Economic Sanctions
Russian President Vladimir Putin described Bitcoin as unstoppable, emphasizing its resilience in the face of external pressures.
He noted that decentralized currencies like Bitcoin offer immunity to suppression compared to traditional financial systems.
Speaking at a Moscow forum, Putin criticized the risks of holding state reserves in foreign currencies, citing political confiscation.
"Who can ban Bitcoin? Nobody. Who can prohibit the use of other electronic means of payment? Nobody. Because these are new technologies."
BREAKING: 🇷🇺 Russian President Putin says "Who can ban #Bitcoin? Nobody." pic.twitter.com/6mJ664BZZ8
— Bitcoin Magazine (@BitcoinMagazine) December 4, 2024
Russia Advances Crypto Taxation and Trade Reforms
The Russian government has revised its Bitcoin and crypto tax laws, exempting transactions from value-added tax (VAT).
Earnings from Bitcoin and crypto-related activities will be taxed like securities, with a personal income tax cap set at 15%.
New regulations now permit the use of Bitcoin and crypto for foreign trade, with full guidelines expected by the end of the year.
Challenges and Restrictions in Russia’s Crypto Ecosystem
Russia has banned mining in occupied Ukrainian territories and some regions in Siberia due to electricity shortages.
Siberian mining restrictions, introduced in December 2023, are expected to last until March 2031, with further bans beginning in December 2024.
Despite these restrictions, Russia is exploring state-backed crypto exchanges to strengthen its alternative financial systems.
