Iranian tax agency to legalize crypto exchanges

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The Iranian tax agency has called for establishing a legal framework for trading digital assets to ensure they can be properly taxed.

Iranian National Tax Administration (INTA) urged regulators in Tehran to legalize crypto trading platforms saying “legalization of crypto exchanges is needed [for levying tax]. Legal transactions should be limited to authorized exchanges that are allowed to convert currencies while keeping track of transactions ”.

The agency lobbied against the establishment of stringent measures regarding crypto exchanges as this could have the opposite effect and create conditions for the development of a black market. INTA also notified that all rules must include penalties for entities that fail to provide their users’ records.

Three tax regimes for crypto exchanges

The Iranian tax agency has created three tax regimes that can be applied to digital currency trading platforms, capital gains tax, fixed base tax and business tax. However, it was not explained how exactly these tax mechanisms would be taxed since each exchange operator already has its own rules.

According to agency officials, there must be a cap on transactions that can be processed through this type of platform and comply with anti-money laundering regulations in force within the Islamic Republic.

If the Iranian government approves the proposal and suggestions from the tax authorities, cryptocurrency trading will join mining and become another Bitcoin-related regulated activity.

Iran exploits lower hash rate

Recently, Iran has stepped forward in an attempt to attract the crypto mining industry as an extension of the licensing system that Tehran launched in 2019.

The country has a mixed relationship with cryptocurrencies and crypto mining, and these new licenses are seen as a step towards regulated industry acceptance as opposed to Chinese-style bans, although the Iranian regime has confiscated over 7,000 BTC mining rigs in May, citing tensions. on the national energy network.

Iranian authorities are constantly trying to restrict trading in crypto-fiat, even though banks and money changers have been allowed to process cryptocurrencies issued by miners licensed in Iran to pay for imports. Crypto mining is still legal for authorized miners operating in Iran, but is temporarily banned until September due to energy concerns during the hot summer months.

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