Russian President Putin Says “Nobody Can Ban Bitcoin”

Russian President Vladimir Putin reaffirmed his support for Bitcoin and digital assets as Russia moves toward greater crypto adoption. Speaking at an investment conference in Moscow on Wednesday, Putin argued that Bitcoin and other cryptocurrencies cannot be banned, asserting that their development will persist regardless of external factors.

“Who can ban Bitcoin? Nobody,” he stated. 

🇷🇺 Russian President Putin says nobody can ban #Bitcoin 🤯

There is no way Russia isn’t buying BTC

pic.twitter.com/iIUevYYyM3

— Vivek⚡️ (@Vivek4real_) December 4, 2024

He also noted that electronic payment methods cannot be restricted, emphasizing that these technologies will continue to evolve. Putin stressed that as people seek to lower costs and improve reliability, such innovations will remain essential.

Russia’s Evolving Stance on Cryptocurrencies

Russia’s stance on cryptocurrencies has evolved. Just last week, Putin signed a law classifying digital currencies as property in foreign trade settlements under an experimental legal regime. The move marks a significant step in cryptocurrency regulation. 

The new law acknowledges digital currencies as property and exempts mining and sales of digital currencies from VAT. Additionally, organizations operating within the experimental legal regime (ELR) are not taxed on their services, though mining facility operators are required to report to tax authorities.

Under the law, individuals earning cryptocurrency through mining will be taxed based on its market value when mined. The tax rate will be progressive, and deductions will be allowed for mining-related expenses.

10% of Russians Own Crypto

In August, Russia legalized Bitcoin and crypto mining, permitting select institutions to mine digital currencies using computing power within the country. 

According to the Bank of Russia, Russian citizens hold nearly $7 billion in assets on cryptocurrency exchanges. A Bitkan study found that around 14.6 million Russians, or 10% of the population, own digital currencies, while another survey revealed that 20% of the population has interacted with cryptos.

Additionally, Russia is working on launching a central bank digital currency (CBDC) in July 2025. The country has already begun testing it with 12 banks, expanding the trial to 9,000 people from 600 in September.