This is due to their inability to control transactions from fiat money to this decentralized market. No one can detect you transferring millions of dollars from one wallet to another. That is also the advantage and disadvantage of Blockchain when all information is not transparent. Besides, the cost of setting up a network to control transactions in decentralized markets takes a lot of money and effort. That's why they can't do anything and just advise people not to participate in the crypto market.
Exactly. That's the main benefit of Bitcoin and a huge concern to authoritarian governments like Russia and China. The decentralized and censorship-resistant design of Bitcoin, makes governments' efforts ineffective against it. Considering how big Bitcoin has become since inception, it's extremely costly and almost impossible to disrupt the entire Blockchain. Not to mention, Bitcoin can be used regardless of an Internet ban from the government. With many ways you can interact with Bitcoin aside from the public Internet, the pioneer cryptocurrency becomes a truly unstoppable form of money.
Russia would have to join the Bitcoin revolution or be left behind. The best way for both ends (the Russian government and Bitcoin) would be to legalize the use of crypto in the country, while collecting taxes from it. As long as Bitcoin is able to be taxed by the government, they'll allow people to use it. I think that Russia in the long term will have its own digital ruble living alongside Bitcoin and other cryptocurrencies for years to come. Of course, the government will patronize the use of the digital ruble on top of Bitcoin. But we'll reach a point where citizens will have the freedom to choose one currency from the other. Not only Russia will do this, but other countries as well. A good example of this is the government of India which had once banned crypto usage, but it changed its mind at a later time. The central bank of Russia has already admitted that it can't ban Bitcoin, so it should only be a matter of time before other central banks around the world do the same. Just my thoughts
