Russian legislation embraces digital currencies, exempting crypto mining and sales from value-added tax.
Key Takeaways
- Vladimir Putin stated that no one can successfully impose a ban on Bitcoin or digital currencies.
- Russia recognizes digital currencies as property in foreign trade settlements under a new legal regime.
Russian President Vladimir Putin stated that new technologies like Bitcoin and digital currencies cannot be effectively banned and will continue to evolve and grow in popularity.
“We see processes with the use of other instruments. For instance, Bitcoin. Who can prohibit the use of it? No one,” said Putin, speaking during a keynote speech at the 15th VTB ‘Russia Calling’ Investment Forum in Moscow on Wednesday.
“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.”
Putin recently signed a law recognizing digital currencies as property in foreign trade settlements under an experimental legal regime. The new framework exempts crypto mining and sales from value-added tax (VAT).
The legislative move aims to create a clear regulatory framework for digital assets, facilitating their integration into the Russian economy and reducing dependence on traditional financial systems, particularly the US dollar.
The push for crypto regulation is partly driven by the need to circumvent economic sanctions imposed by Western nations. Embracing digital currencies is one of Russia’s ways to enhance its financial sovereignty and find alternative means of conducting 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 crypto mining since China’s crackdown on the industry.
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