Russian President Vladimir Putin publicly acknowledged Bitcoin's unstoppable nature, signaling cryptocurrency's increasing importance as Russia faces ongoing sanctions.

During a speech in Moscow, Putin highlighted Bitcoin's role as a decentralized currency and discussed the prevailing dominance of traditional currencies.

He emphasized the need to invest state reserves domestically, citing risks of political confiscation associated with foreign reserves.

Putin indicated a positive stance on cryptocurrency as a means to lower costs and boost reliability, aligning with Russia's evolving payment technologies.

The Russian government introduced significant changes to its cryptocurrency regulations, including revised crypto taxation frameworks to exempt transactions from VAT.

Earnings from crypto transactions will now face a 15% personal income tax cap, similar to securities profits taxation.

Russia has restricted crypto mining in regions such as occupied Ukrainian territories and Siberia due to electricity shortages.

Despite these restrictions, cryptocurrencies continue to gain wider acceptance in Putin's government, including the allowance for crypto in foreign trade since September 1.

Putin is also reportedly planning to launch state-backed crypto exchanges, reflecting Russia's strategic interest in cryptocurrencies amid sanctions.