Putin Declares Bitcoin Unstoppable: Russia Embraces Crypto as Property
In a move that further’s Bitcoin, Russian President Vladimir Putin has declared that Bitcoin and digital assets cannot be banned. Speaking at the 15th VTB ‘Russia Calling’ Investment Forum in Moscow, Putin emphasized the inevitability of digital currencies continuing to grow, evolve, and gain popularity.
“No One Can Ban Bitcoin”
“We see processes with the use of other instruments. For instance, Bitcoin. Who can prohibit the use of it? No one,” Putin stated. He highlighted the increasing shift towards innovative financial tools that reduce costs and offer greater reliability.
“Or the use of other electronic ways of settlement. No one can ban the use of them,” Putin stressed. “These instruments will continue to develop because everyone will try to reduce costs and make these instruments more reliable. This is inevitable.”
This statement comes alongside a landmark law signed by Putin on November 29, officially recognizing digital currencies as property. The new legislation not only integrates cryptocurrencies into Russia’s economy but also positions the country as a leader in digital asset regulation.
Key Highlights of Russia’s Crypto Law
Property Status for Crypto: Digital currencies are now classified as property under Russian law, enabling their use in foreign trade settlements.
Tax Exemptions: Mining and crypto sales are exempt from VAT, and transaction facilitators in experimental zones are free from additional taxes.
Mining Income Rules: Mining revenue is classified as non-cash income, with taxable amounts determined after deducting expenses.
Progressive Tax System: Personal income tax rates for crypto transactions range from 13% for earnings up to 2.4 million rubles to 15% for higher amounts. Starting in 2025, corporate profits from mining will face a 25% tax.
Why It Matters
Russia’s embrace of cryptocurrency is more than a regulatory milestone—it’s a strategic play. As Western sanctions pressure the Russian economy, digital currencies offer an alternative to traditional financial systems dominated by the US dollar. By legalizing crypto mining in August and establishing a clear framework for its use, Russia is positioning itself as a major player in the global crypto ecosystem.
The country’s regulatory clarity and tax incentives could attract crypto miners and investors worldwide, solidifying its role as a hub for digital asset innovation.
A Global Message
Putin’s bold declaration that “no one can ban Bitcoin” resonates far beyond Russia’s borders. It underscores the resilience and inevitability of digital currencies as they continue to gain traction globally. For businesses, governments, and investors, this marks a pivotal moment in the evolution of financial systems.
At Bitcoin on Balance, we believe these developments highlight the growing importance of Bitcoin as a tool for financial sovereignty and economic transformation. As more nations explore the integration of digital assets, now is the time to consider how Bitcoin can enhance your organization’s financial strategy.
Stay informed and ahead of the curve with expert insights from Bitcoin on Balance. Contact us today for more updates on the future of Bitcoin and its impact on global finance.