Russian President Vladimir Putin has emphasized Bitcoin's decentralization and resistance to external control. Putin has advocated for regulatory clarity and promoted cryptocurrencies as a cost-effective tool, in line with Russia's financial strategy under Western sanctions. The Russian government has introduced a new cryptocurrency tax law that classifies digital currencies as assets, imposing income tax on sales while exempting mined cryptocurrencies from value-added tax.
After advocating for the digital asset at this year's BRICS Summit in Kazan, Russian President Vladimir Putin reiterated Bitcoin's decentralization and independence from the traditional financial system.
Speaking at a forum in Moscow on Wednesday, Putin's remarks came as the importance of alternative payment systems to counter the dominance of the US dollar grows, especially in the context of tensions between Russia and the West. Everyone knows what's going on there. .
It's an obvious question. Why accumulate reserves when you can easily lose them? For example, Bitcoin, who can ban it? Anyone.
“Russian President Vladimir Putin”
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President Putin: Blockchain and cryptocurrencies are cost-effective and reliable tools
President Putin said the cryptocurrency and blockchain ecosystem is a cost-effective and reliable tool that can pave the way to the next generation of finance. Russia is becoming more open to digital assets, which makes sense given that it is one of the most sanctioned countries on the planet. No wonder Russians are seeking alternatives to the constraints of the traditional financial system.
Furthermore, President Putin pointed to the country's efforts to create a clear regulatory framework for the use of cryptocurrencies among Russian citizens and businesses, in line with the government's broader fiscal strategy.
Keep in mind, Western sanctions have frozen approximately US$300 billion (A$466 billion) of Russia's foreign exchange reserves in 2022 in response to the Ukraine conflict, and this will force the Russian government to This caused the country to reconsider its reliance on foreign currencies for reserves…it was already a bit late. for that.
Recently, the Russian government implemented a new virtual currency tax regulation law. On November 27, the Federal Council, the upper house of Russia's parliament, approved a federal bill introducing a tax on cryptocurrency transactions, a new step towards legalizing and promoting the use of cryptocurrencies in the country.
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The law classifies digital currencies as property, and sales of virtual currencies are subject to a personal income tax of 13% to 15%. It will also provide a value-added tax (VAT) exemption on mined cryptocurrencies, providing some relief to Russian crypto miners.
