- August 18, 2021
- Posted by: admin
- Category: BitCoin, Blockchain, Cryptocurrency, Investments
The discussion on rules that apply to Cryptocurrency in Iran has been ongoing for some time now. Fars News Agency reported that the popularity of cryptocurrencies among Iranians has grown significantly with the rising prices of decentralized assets in recent months. Due to the growing popularity of cryptocurrencies, Iranian lawmakers recently prepared new legislation to introduce comprehensive rules for the expanding industry.
Cryptocurrency Rules In Iran
Two years ago, Iran recognized cryptocurrency mining as a legal industrial activity. Consequently authorizing dozens of entities to extract digital currencies using the country’s cheap energy. However, this year, mining was partially blamed for electricity shortages and blackouts across the country. The government went after illegal miners and even threatened to close down licensed enterprises during hours of peak consumption.
Related Reading | Latest Pennsylvania Legislature Considers Cryptocurrency Task Force Bill
This led to calls to properly regulate the crypto industry. In June, Iranian President Hassan Rouhani emphasized the need to legalize cryptocurrency activities to preserve and protect national interests. During the cabinet’s Economic Coordination Board meeting, he stated “For legalizing the activity of cryptocurrencies and protecting people’s capital in this area, we must think of a solution as soon as possible and lay down and communicate the necessary laws and instructions.” In July, lawmakers proposed legislation designed to put the crypto industry in order. The bill aims to support cryptocurrency mining and regulate the exchange market but bans crypto payments in the country.
The Iranian Vice Presidency for Legal Affairs recently made a statement about what rules apply to a cryptocurrency exchange. This was in response to an inquiry by the Iranian Information and Communication Technology Guild. The association had asked for clarification on the applicable crypto rules. The President’s legal team noted that the law states that cryptocurrency cannot be used for payments inside the country. It pointed out that the current rules are in accord with the country’s monetary and banking legislation and concluded: “Converting one cryptocurrency into another digital currency is not illegal”.
Tax Agency Calls For Legalisation of Crypto Exchanges
The Iranian Tax Agency (INTA) has called for the establishment of a legal framework for the taxation of crypto trading platforms operating in the country. In an excerpt from its draft proposal quoted by the local media, INTA reportedly detailed the necessity of legalizing digital asset exchanges.
Related Reading | U.S. Lawmakers Narrow US Infrastructure Bill Requirements For Crypto Tax Reporting
The INTA urged regulators in Tehran to legalize crypto trading platforms saying that “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.”
The agency created three tax regimes that can be applied to digital currency trading platforms. They are; tax on capital gain, fixed base tax, and occupational tax. However, the proposal does not say anything about the mechanisms for taxing such companies. The proposal sets a cap on transactions with decentralized exchanges in accord with anti-money laundering regulations.
Total crypto market cap falls back down from $2 trillion | Source: Crypto Total Market Cap from TradingView.com
Featured image from Forbes, Chart from TradingView.com
