Putin calls Bitcoin unstoppable as Russia advances crypto laws

Russian President Vladimir Putin publicly acknowledged the resilience of Bitcoin (CRYPTO:BTC), stating that it cannot be banned amid ongoing sanctions against the country.

Speaking at a forum in Moscow, Putin emphasised the growing importance of cryptocurrency as a decentralized currency that is less susceptible to external pressures.

He noted the dominance of traditional currencies like the dollar but highlighted the emergence of new payment systems, with Bitcoin serving as a key example.

Putin expressed concerns about holding state reserves in foreign currencies due to risks of political confiscation, especially after Western nations froze approximately $300 billion of Russian reserves following the Ukraine conflict.

“Who can ban Bitcoin? Nobody. Who can prohibit the use of other electronic means of payment? Nobody. Because these are new technologies,” he stated.

In conjunction with these remarks, Russia has implemented significant changes to its cryptocurrency regulations. 

The government revised its crypto taxation framework, exempting cryptocurrency transactions from value-added tax (VAT). 

Instead, earnings from these transactions will be taxed similarly to securities income, with a cap of 15% on personal income tax for crypto-related profits.

Despite these advancements, authorities have also cracked down on crypto mining in specific regions. 

Mining activities are banned in occupied territories such as Donetsk and Lugansk, and Siberia faces seasonal mining restrictions from December 2023 to March 2031 due to electricity shortages.

Additionally, a law allowing the use of cryptocurrency for foreign trade transactions took effect on September 1, although full regulation is still awaited.

Putin's government is also reportedly planning to establish state-backed crypto exchanges. 

At the time of reporting, the Bitcoin (BTC) price was $101,844.