Cryptocurrency exchanges in Iran would soon be taxed as the tax agency wants to legalise their operations
The Iranian National Tax Administration (INTA) has drafted a proposal that seeks to make cryptocurrency exchanges legal in the country. By legalising crypto exchange operations in Iran, the agency expects that it would be easier to tax them.
A report from a local media outlet revealed that the INTA feels that legalising cryptocurrency exchanges is necessary to generate tax revenue from them. The INTA said, “Legal operations must be limited to authorised exchanges that are allowed to convert currency while keeping track of transactions”.
Iran is one of the top countries in terms of cryptocurrency adoption, thanks to a large number of mining operations in the country. The Iranian government also uses cryptocurrencies to circumvent the trading sanctions put in place by the United States.
Due to the popularity of cryptocurrencies in Iran, President Hassan Rouhani called for a legal framework for crypto trading in the country two months ago. As per the INTA, the legal framework needs to cover a wide range of areas to ensure that cryptocurrency exchanges don’t operate under harsh conditions. The agency feels that doing so would only promote the rise of black market crypto trading in Iran.
The INTA has proposed three tax regimes on digital currency exchanges: tax on capital gain, fixed base tax and occupational tax. However, there are no specific details yet on how the crypto exchanges would be taxed.
The proposal also covered decentralised exchanges (DEX), with their transaction limit set according to anti-money laundering regulations. Iran is one of the top cryptocurrency mining countries in the world.
The government has banned mining operations until September, citing power outages as the major reason for the action. Despite Iran’s status as a leading crypto nation, the government doesn’t allow the use of cryptocurrencies to pay for goods and services within the country.
However, banks and forex shops can use the cryptocurrencies mined within Iran to import products into the country.