Iran’s tax agency, the Iranian National Tax Administration (INTA) has put forward a view that it wants to tax the digital assets exchanges operating in the country. The agency wants to establish a legal framework for exchanges so that taxes can be properly collected.
The agency requested regulators in Tehran to legalize crypto trading platform saying:
Legalizing crypto exchanges is necessary [for levying tax]. Legal operations must be limited to authorized exchanges that are allowed to convert currency while keeping track of transactions.
The NITA also warned about strict measures against crypto exchanges as it could have a “reverse effect” and create situations of a black market in the economy.
Iran’s tax agency has formed three tax regimes to be applied on the current trading platforms-“tax on capital gain, fixed base tax, and occupational tax.” Although no specific taxing mechanisms for exchange operators have been mentioned in the proposal.
The proposal also mentions Decentralized Finance (DeFi). According to the authorities, there should be a cap on transactions occurring on decentralized exchanges and be in line with the existing anti-money laundering regulations within the Islamic Republic.
Given that the Iranian government approves the proposal then cryptocurrency trading will join mining and become legal in Iran. Mining virtual currency is legal in Iran and miners can operate under rules approved by the government in July 2019. As per law, miners of cryptocurrencies are recognized as owners of digital assets.
Last week the Vice Presidency for Legal Affair said converting one cryptocurrency into another digital currency is not illegal.
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.