According to a new proposal by the country’s tax authority, the Iranian National Tax Administration (INTA) is pushing to establish a legal framework for the taxation of crypto trading platforms operating in the country.
INTA reportedly detailed the importance of legalizing digital asset exchanges in a proposal quoted by local media two months after Iranian President Hassan Rouhani’s call for a legal framework for crypto trading.
INTA reminded Iranian regulators that levying the tax requires a legal framework, and that the government should only allow authorized exchanges to convert currency while keeping track of transactions.
The tax authority urged that the legal framework remain broad in order to avoid harsh conditions for crypto exchanges, which could lead to the proliferation of a black market.
The INTA proposes three tax regimes on crypto trading platforms: capital gains tax, fixed base tax, and occupational tax, though the proposal does not specify the mechanisms for taxing crypto businesses.
According to the sources, decentralized finance was also included in the proposal. To comply with anti-money laundering regulations, the proposal seeks to impose a cap on transactions conducted on decentralized exchanges.
As we reported in early July, the Iranian Parliament Commission on Economy drafted a new bill to restrict cryptocurrency use within the country while providing a clearer legal framework for miners.
Crypto mining is still legal in Iran for licensed miners, though it is temporarily prohibited until September due to energy concerns during the hot summer months. Miners are acknowledged as owners of the digital assets they create.
Converting one cryptocurrency to another is also not illegal. However, current legislation only allows banks and licensed exchanges to use digital currencies mined in Iran to pay for imports; crypto cannot be used to pay for goods or services within the country.
Iran’s law enforcement spent the summer raiding unlicensed cryptocurrency miners. During several operations, police seized up to 7,000 mining rigs. Last month, the government ordered all licensed cryptocurrency miners to halt production until further notice.