Iran’s tax authority wants to legalize crypto exchanges
The Iranian tax agency has called for establishing a legal framework for crypto trading platforms so they can be taxed properly.
The Iranian National Tax Administration (INTA) is pushing to establish a legal framework for the taxation of crypto trading platforms operating in the country, according to a new proposal by the country’s tax authority.
Two months after Iranian President Hassan Rouhani’s call for a legal framework for crypto trading, INTA reportedly detailed the necessity of legalizing digital asset exchanges in a proposal quoted by the local media.
Reminding Iranian regulators that a legal framework is required for levying taxes, INTA said that the government should only allow authorized exchanges to convert currency while keeping track of transactions.
The tax authority urged to keep the legal framework on the broader side of the spectrum to avoid harsh conditions for crypto exchanges that could cause the proliferation of a black market.
Tax on capital gains, fixed base tax and occupational tax are the three tax regimes on crypto trading platforms proposed by the INTA, though the proposal does not specify the mechanisms for taxing crypto businesses.
Decentralized finance also made its way into the proposal, according to the sources. To comply with Anti-Money Laundering regulations, the proposal wants to establish an upper limit on transactions occurring on decentralized exchanges.
As Cointelegraph reported in early July, the Iranian Parliament Commission on Economy drafted a new bill to restrict the use of cryptocurrencies within the country while providing a clearer legal framework for miners.
Related: Iran pauses electricity exports due to crypto mining and hot summer
Crypto mining is still legal for licensed miners operating in Iran, although it’s temporarily banned until September due to energy concerns during the hot summer months. Miners are recognized as owners of the digital assets they mint.
Converting one cryptocurrency to another is not illegal, either. But the current law only allows banks and licensed exchanges to use digital currencies mined in Iran to pay for imports, while crypto cannot be used for payments within the country.
Iran law enforcement spent the summer conducting raids on unlicensed crypto miners. Police seized as many as 7,000 mining rigs in several operations. Last month, the government asked the licensed crypto miners to halt production altogether until further notice.
