The Iranian National Tax Administration has stepped forward with its proposal to levy tax on digital asset exchanges in the nation. The authority calls for legalizing their operations. INTA has urged regulators in Tehran to offer legalization to the crypto platforms. An excerpt from the draft says that the tax authority insists on legalizing crypto exchanges. The legal operations should be limited to exchanges that have authorized themselves and are allowed to convert the currency while tracking the transaction.
The administration also warned against the imposition of stringent measures regarding the crypto exchanges. It believes that they would have reversed effects and create conditions for a forming black market. At the same time, it is stressing upon the fact that regulations must envisage penalties for its entities that refuse to offer their users with the records.
The tax agency has prepared tax regimes that are applicable on digital currency platforms. The proposal does not elaborate on the taxing mechanisms for the operators of the exchange. Another key element is condemning the decentralization of digital asset exchanges. The tax officials want to introduce a cap for transactions that can get processed through this platform with the existing regulations for money laundering in the Islamic Republic.
The government is accepting the proposal of the tax authority. Tehran has recognized the mining of digital currencies as a legal industry in 2019. Soon after that, INTA introduced rules of taxation for the crypto miners.
Iran has offered licenses to at least dozens of mining rights. They are obliged to pay taxes with a few exceptions. The mining businesses are eligible for tax exemption in case of repatriating their overseas earnings. The tax regimes are taking into account the location of the units and also considering their distance.
The surging popularity of cryptocurrency is making officials have concerns as it is attracting capital from traditional marketers. In mid-May, the Iranian parliament asked tax agencies to profile the domestic crypto exchange owners. The authorities have been trying to curb the trading of crypto-fiat. But banks and money exchanges got the allowance for processing of cryptocurrencies by the licensed miners inside Iran to offer payment for imports. Earlier this month, legal experts belonging to the president’s administration stated that crypto swapping is not yet prohibited in Iran.