Bitcoin Cannot Be Banned Amid Sanctions
Russian President Vladimir Putin publicly stated on Wednesday that Bitcoin is unstoppable, marking his clearest acknowledgment of the growing importance of cryptocurrencies as Russia faces ongoing sanctions.
Speaking at a Moscow forum, Putin spoke of the dominance of traditional currencies such as the U.S. dollar while pointing to the emergence of next-generation payment systems. He sees Bitcoin as a prime example of a decentralized currency that is not subject to external oppression.
Putin is establishing a clear regulatory system for the Russian cryptocurrency market
Putin also Highlight How new payment technologies are being developed to reduce costs and increase reliability suggests a positive attitude towards the potential of cryptocurrencies. He also expressed concern about holding state reserves in foreign currency, citing the risk of political expropriation.
Putin advocates diverting these reserves to domestic investment. This change in view was triggered by Western countries freezing about $300 billion in Russian reserves in 2022 after the outbreak of war in Ukraine.
“Who can ban Bitcoin? No one. Who can ban other electronic payment methods? No one. Because these are new technologies,” Putin said.
At the same time, Russia made significant changes to its policies. Cryptocurrency regulations. government recently Revised cryptocurrency tax frameworkexempting cryptocurrency transactions from Value Added Tax (VAT).
Instead, income from these transactions will be taxed like securities income, with personal income taxes on cryptocurrency-related profits capped at 15%.
In contrast, the authorities cracked down Cryptocurrency Mining in some areas. Mining activities are Banned in the occupied territories of Ukraineincluding Donetsk, Luhansk, Zaporozhye and Kherson.
Additionally, Siberia, known for its large-scale mining operations, will face seasonal mining restrictions from December 2023 to March 2031. Officials said a total mining ban would begin in December 2024 in some areas. Winter power shortage as the primary reason.
However, cryptocurrencies continue to gain wider acceptance under Putin’s government. a law allows Using Cryptocurrencies for Foreign Trade Transactions The bill takes effect on September 1. Full regulation of the activity remains to be implemented.
Putin also reportedly plans to launch State-backed cryptocurrency exchange. These developments highlight Russia’s growing interest in leveraging cryptocurrencies amid economic sanctions and a push for alternative financial systems.
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