Iranian tax administration wants to legalize crypto exchanges

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Iran’s 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 from the country’s tax authority.

Two months after Iranian President Hassan Rouhanis called for a legal framework for crypto trading, INTA reportedly detailed the need to legalize digital asset trading in a proposal cited by local media.

Reminding Iranian regulators that a legal framework is needed to levy taxes, INTA said the government should only allow authorized exchanges to convert currencies while keeping track of transactions.

The tax administration urged keeping the legal framework on the broadest side of the spectrum in order to avoid harsh conditions for crypto exchanges that could lead to the proliferation of a black market.

Capital gains tax, fixed base tax, and professional tax are the three tax regimes on crypto trading platforms offered by INTA, although the proposal does not specify the mechanisms for taxing them. crypto companies.

Decentralized finance has 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 for transactions carried out on decentralized exchanges.

As Cointelegraph reported in early July, the Iranian Parliament’s Committee on the Economy has drafted a new bill aimed at restricting the use of cryptocurrencies in the country while providing a clearer legal framework for minors.

Related: Iran Suspends Electricity Exports Due To Crypto Mining And Hot Summer

Crypto mining is still legal for authorized miners operating in Iran, although it is temporarily banned until September due to energy concerns during the hot summer months. Minors are recognized as owners of the digital assets they build.

Converting from one cryptocurrency to another is also not illegal. 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 in the country.

Iranian law enforcement has spent the summer raiding unlicensed crypto miners. Police seized up to 7,000 mining platforms in several operations. Last month, the government asked the licensed crypto miners to halt production altogether until further notice.

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