Key takeaways
- Vladimir Putin said that no one can succeed in imposing a ban on Bitcoin or digital currencies.
- Russia recognizes digital currencies as property in foreign trade regulations under a new legal regime.
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Russian President Vladimir Putin said new technologies such as Bitcoin and digital currencies cannot be effectively banned and will continue to evolve and gain popularity.
“We see processes with the use of other instruments. For example, Bitcoin. Who can prohibit its use? Nobody,” Putin said during a speech Wednesday at VTB’s 15th “Russia Calling” Investment Forum in Moscow.
“Or the use of other electronic means of settlement. No one can prohibit their use,” Putin emphasized. “These instruments will continue to develop because everyone will try to reduce costs and make these instruments more reliable. It’s inevitable.
Putin recently signed a law recognizing digital currencies as property in foreign trade regulations as part of an experimental legal regime. The new framework exempts crypto mining and sales from value-added tax (VAT).
This legislative measure aims to create a clear regulatory framework for digital assets, facilitating their integration into the Russian economy and reducing dependence on traditional financial systems, in particular the US dollar.
The push for crypto regulation is partly driven by the need to circumvent economic sanctions imposed by Western countries. The adoption of digital currencies is one of the ways Russia is strengthening its financial sovereignty and finding alternative ways to conduct international trade without relying on the dollar.
In August, Putin signed a law legalizing crypto mining in Russia. The country has become a major player in global cryptocurrency mining since China’s crackdown on the sector.
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