The Iranian tax office has asked for the creation of a regulatory framework for cryptocurrency platforms for them to be appropriately taxed.
According to a recent proposal by the country’s tax administration, they are seeking to develop a regulatory regime for the taxing of cryptocurrency platforms functioning in the nation.
They allegedly outlined the need of regulating virtual currency exchanges in a statement cited by local news media 2 months after their Iranian President Hassan Rouhani’s request for a legislative structure for cryptocurrencies trading.
They cautioned Iranian authorities that incurring taxes demands a legislative structure and that the state must only allow exchanges to change money while maintaining records of transactions.
The financial regulators suggested that the regulatory framework remain broad to avoid severe circumstances for cryptocurrency trading, which may lead to the growth of an illicit market.
The INTA proposes 3 taxation regimes for cryptocurrency platforms: tax on capital gains, fixed base tax, and employment tax, however, the plan does not identify the procedures for charging cryptocurrency companies.
As per the sources, decentralized financing was also included in the concept. To conform with anti-money laundering rules, the plan seeks to impose a cap on trades executed on decentralized platforms.
The Iranian Parliament Committee on Economics has prepared a new law to restrict the usage of cryptos within the nation while also presenting miners with a clearer legislative structure.
Cryptocurrency mining is still allowed in Iran for registered miners, however, it is currently prohibited till September owing to electricity issues mostly during warmer months. Miners are acknowledged as proprietors of the digital products they create.
Transferring one crypto to another is also not prohibited.
However, current legislation only permits institutions and regulated exchanges to utilize virtual currencies generated in Iran to purchase imports, and cryptocurrency cannot be utilized to make domestic payments.
Iran’s community policing spent several months raiding unregistered cryptocurrency miners. During numerous raids, officers found and confiscated up to 7,000 mining equipment.
Last month, the state ordered all licensed cryptocurrency miners to cease output until they say otherwise.