Iran tax agency to legalize crypto exchanges

The Iranian National Tax Administration (INTA) said it wants to establish a legal framework for the taxation of crypto trading platforms operating in the country

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

The Iranian National Tax Administration (INTA) urged regulators in Tehran to legalise crypto trading platforms saying that “legalising crypto exchanges is necessary [for levying tax]. Legal operations must be limited to authorised exchanges that are allowed to convert currency while keeping track of transactions”.

The agency lobbied against establishing rigorous measures regarding crypto exchanges as it could have “reverse effects” and create conditions for the development of a black market. INTA also notified that all rules have to predict sanctions for entities that don’t provide their users’ records.

Three tax regimes for crypto exchanges

Iran’s tax agency created three tax regimes that can be applied to digital currency trading platforms – “tax on capital gain, fixed base tax and occupational tax.” However, it was not explained how exactly these tax mechanisms would be taxed since each exchange operator has already its own rules.

According to the agency officials, there has to be a cap on the transactions that can be processed through this kind of platform and be in line with existing anti-money laundering regulations within the Islamic Republic.

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

Iran exploits hash rate drop

Recently, Iran has stepped forward in an attempt to entice the crypto mining industry as an extension of the licencing system started by Tehran in 2019.

The country has a mixed relationship with cryptocurrencies and crypto mining, and these new licences are seen as a move towards a regulated acceptance of the industry as opposed to Chinese style bans, although the Iranian regime confiscated more than 7,000 BTC mining rigs during May citing strains on the national energy grid.

Iranian authorities are constantly trying to restrain crypto-fiat trading even though banks and moneychangers were allowed to process cryptocurrency minted by licensed miners inside Iran to pay for imports. Crypto mining is still legal for licensed miners operating in Iran but is temporarily banned until September due to energy concerns during the hot summer months.

Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.

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