Iran’s tax administration is pushing for the legalization of cryptocurrency exchanges.
According to local news source Eghtesad News, the Iranian National Tax Authority has suggested legalizing digital asset exchanges in order to better collect taxes from them.
Additionally, the INTA cautioned that excessive regulation of the industry may have a “reverse impact” and result in the development of illicit markets. According to Eghtesad News, an extract from the draft legislation stated: “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.”
Three distinct tax regimes for cryptocurrency exchanges have been proposed: a capital gains tax, a fixed base tax, and an occupational tax. Additionally, the plan capped transactions on decentralized exchanges to comply with anti-money laundering laws.
Iran’s government has recently proven unreceptive to the crypto sector. Since May, a ban on crypto mining has been in effect and is scheduled to last until Sept. 22. The prohibition on the energy-intensive technique was implemented to assist solve the country’s chronic power shortages, which have sparked massive demonstrations in several areas.
The Iran Blockchain Association was suspended in June for suspected violations of government rules and its own bylaws. The self-regulatory organization has been required to provide comprehensive financial reports to the government in order to disclose more information about its interactions with different cryptocurrency exchanges.
According to a recent survey conducted by the Tehran Chamber of Commerce, Industries, and Mining, about 12 million of Iran’s almost 83 million residents have invested in cryptocurrencies.
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