Iran: Tax Authority Planning To Legalize Crypto Exchanges For Miners

According to a new proposal by Iran’s tax authority, the Iranian National Tax Administration (INTA) is promoting the establishment of a legal framework to impose taxes on cryptocurrency trading platforms operating in the country. Two months after Iranian President Hassan Rouhani requested the establishment of a legal framework for cryptocurrency transactions, INTA reportedly detailed the need to legalize the exchange of digital assets in a proposal cited by local media. To remind the Iranian regulators of the current need for a legal framework for tax collection, INTA stated that the government should now only allow authorized exchanges to convert these currencies while also tracking the transactions that are happening.

The tax authorities in Iran called for the legal framework to be kept in a broader scope. This is so that they can avoid harsh conditions for cryptocurrency exchanges. These conditions could lead to the spread of the black market. Capital gains tax, fixed base tax, and occupational tax are the three tax systems proposed by INTA for cryptocurrency trading platforms. However, the proposal does not provide any mechanism for the taxation of cryptocurrency companies. Another thing to notice here is that the sources said that now DeFi has also been included in the proposal. In order to abide by the anti-money laundering regulations, the proposal aims to set an upper limit for transactions that will be conducted on various decentralized exchanges. 

As reported earlier, the Iranian Parliament Commission on Economy has drafted a new law. The law focuses on restricting the use of cryptocurrencies in Iran. The authorities will also create a clearer legal framework for miners.

Licensed Miners In Iran

For licensed miners operating in Iran, crypto mining is still legal. However, crypto mining, for the time being, is banned till September in Iran. This is because of the current power problems in the country due to the hot summer months. Miners are considered to be the owners of the digital assets that they mine. It is not illegal to convert one type of cryptocurrency to another. However, the current law in Iran allows only the banks and licensed exchanges to use digital currencies mined in the country. Through that, they can pay for imports. Cryptocurrencies cannot be used for domestic payments.

Iranian police searched for undocumented miners all summer. The police there confiscated a whopping 7,000 mining facilities that were serving in different operations. Last month itself, the government required all the licensed cryptocurrency miners to stop the production completely until further notice.

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