The Iranian tax authority has called for the creation of a legal framework for exchanging digital assets to ensure that they can be properly taxed.
The Iranian National Tax Administration (INTA) urged regulators in Tehran to legalize crypto trading platforms, saying that “legalization of crypto exchanges is necessary”. [for levying tax]. Legal transactions must be restricted to authorized exchanges that are allowed to exchange currencies while they are tracking the transactions ”.
The agency opposed the introduction of rigorous measures in relation to crypto exchanges, as this could have “reverse effects” and create conditions for the development of a black market. INTA also announced that all rules must predict penalties for companies that fail to provide their users’ records.
Three tax systems for crypto exchanges
The Iranian tax authority has created three tax systems that can be applied to digital currency trading platforms – “Capital Gains Tax, Fixed Base Tax and Business Tax”. However, it has not been explained how exactly these tax mechanisms are taxed, as each exchange operator already has its own rules.
According to the authorities, the transactions that can be processed through this type of platform must be limited and comply with the existing anti-money laundering regulations within the Islamic Republic.
If the Iranian government approves the proposal and the tax authority’s proposals, cryptocurrency trading will join mining and become another regulated bitcoin-related activity.
Iran is taking advantage of the drop in hash rate
Recently, Iran tried to lure the crypto mining industry as an extension of the licensing system launched by Tehran in 2019.
The country has a mixed relationship with cryptocurrencies and crypto mining, and these new licenses are seen as a move towards regulated industry acceptance as opposed to Chinese-style bans, despite the Iranian regime mining more than 7,000 BTC in May. Rigs citing trunks seized on the national power grid.
Iranian authorities are constantly trying to restrict crypto fiat trading, even though banks and money changers were allowed to process cryptocurrencies minted by licensed miners in 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 issues during the hot summer months.