crypto trading platforms so they can be taxed properly.
The Iranian 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 by the country’s tax authority.
Two months after Iranian President Hassan Rouhani’s call for a legal framework for crypto trading, INTA reportedly detailed the necessity of legalizing digital asset exchanges in a proposal quoted by the local media.
Reminding
Iranian regulators that a legal framework is required for levying
taxes, INTA said that the government should only allow authorized
exchanges to convert currency while keeping track of transactions.
The
tax authority urged to keep the legal framework on the broader side of
the spectrum to avoid harsh conditions for crypto exchanges that could
cause the proliferation of a black market.
Tax on capital gains,
fixed base tax and occupational tax are the three tax regimes on crypto
trading platforms proposed by the INTA, though the proposal does not
specify the mechanisms for taxing crypto businesses.
Decentralized
finance 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 on transactions occurring on decentralized
exchanges.
As Cointelegraph reported in early July,
the Iranian Parliament Commission on Economy drafted a new bill to
restrict the use of cryptocurrencies within the country while providing a
clearer legal framework for miners.
Related: Iran pauses electricity exports due to crypto mining and hot summer
Crypto mining is still legal for licensed miners operating in Iran, although it’s temporarily banned until September due to energy concerns during the hot summer months. Miners are recognized as owners of the digital assets they mint.
Converting
one cryptocurrency to another is not illegal, either. 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 within the country.
Iran law enforcement spent the summer conducting raids on unlicensed crypto miners. Police seized as many as 7,000 mining rigs in several operations. Last month, the government asked the licensed crypto miners to halt production altogether until further notice.
