Is Crypto Legal in Iran?

Iran is subject to FATF High-Risk Jurisdiction status with countermeasures called for, meaning the country does not have a compliant AML/CFT framework and international entities must apply enhanced scrutiny to Iranian counterparties, including virtual asset service providers (VASPs) Financial Action Task Force Identifies Jurisdictions with Anti-Money Laundering, Combating the Financing of Terrorism, and Counter-Proliferation Finance Deficiencies | FinCEN.gov

Iran's domestic legal framework for cryptocurrency regulation is not recognized by FATF as compliant, and the country lacks the comprehensive AML/CFT legislation necessary to implement travel-rule standards Financial Action Task Force (FATF) Calls for Countermeasures on Iran, Evaluates U.S. AML Framework, Releases Digital Identity Guidance | U.S. Department of the Treasury

No Iranian licensing regime for VASPs has been established that meets international standards; the FATF has explicitly identified Iran as requiring countermeasures, including prohibiting financial institutions and VASPs from establishing new correspondent relationships with Iranian entities Financial Action Task Force Identifies Jurisdictions with Anti-Money Laundering, Combating the Financing of Terrorism, and Counter-Proliferation Finance Deficiencies | FinCEN.gov

The practical reality is that Iran is internationally isolated in the digital asset space, with global financial institutions directed to treat Iranian VASPs as high-risk due to inadequate AML/CFT systems FATF Advances Work Combatting Proliferation Financing, Reaffirms Countermeasures Against Iran | U.S. Department of the Treasury

Iranian financial institutions and VASPs face international sanctions and countermeasures, and the FATF has called for effective countermeasures since 2020, reaffirmed in February 2025 and again in February 2026 Financial Action Task Force (FATF) Calls for Countermeasures on Iran, Evaluates U.S. AML Framework, Releases Digital Identity Guidance | U.S. Department of the Treasury

The travel-rule framework, as defined by FATF Recommendation 16, requires VASPs to share originator and beneficiary information for virtual asset transfers; Iran has not implemented this requirement, and its inability to comply has contributed to its continued high-risk designation Financial Action Task Force Identifies Jurisdictions with Anti-Money Laundering, Combating the Financing of Terrorism, and Counter-Proliferation Finance Deficiencies | FinCEN.gov

The Financial Action Task Force (FATF) is the international standard-setting body for AML/CFT/CPF; on October 11, 2007, FATF identified Iran as the only country with significant AML/CFT vulnerabilities requiring enhanced due diligence Guidance to Financial Institutions on the Increasing Money Laundering Threat Involving Illicit Iranian Activity | FinCEN.gov

FATF continues to list Iran on its "High-Risk Jurisdictions Subject to a Call for Action" list, noting that Iran has significant strategic deficiencies in its AML/CFT/CPF regimes Financial Action Task Force Identifies Jurisdictions with Anti-Money Laundering, Combating the Financing of Terrorism, and Counter-Proliferation Finance Deficiencies | FinCEN.gov

The FATF public statement on Iran reminds all jurisdictions of their obligations under FATF standards to address proliferation financing risks emanating from Iran and urges all jurisdictions to apply effective countermeasures Financial Action Task Force Identifies Jurisdictions with Anti-Money Laundering, Combating the Financing of Terrorism, and Counter-Proliferation Finance Deficiencies | FinCEN.gov

The FATF called on all jurisdictions to impose effective countermeasures on Iran, specifically requiring financial institutions to review, amend, or if necessary terminate correspondent relationships with Iranian banks or limit business relationships or financial transactions with Iran Financial Action Task Force (FATF) Calls for Countermeasures on Iran, Evaluates U.S. AML Framework, Releases Digital Identity Guidance | U.S. Department of the Treasury

The FATF countermeasures are designed to protect the international financial system from ongoing money laundering, terrorist financing, and proliferation financing (ML/TF/PF) risks emanating from Iran Financial Action Task Force (FATF) Calls for Countermeasures on Iran, Evaluates U.S. AML Framework, Releases Digital Identity Guidance | U.S. Department of the Treasury

The U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) administers existing U.S. sanctions with respect to the Government of Iran, including Iranian Government-owned banks, and other sanctions imposed on Iranian entities linked to terrorist activity and proliferation of weapons of mass destruction Guidance to Financial Institutions on the Increasing Money Laundering Threat Involving Illicit Iranian Activity | FinCEN.gov

The Financial Crimes Enforcement Network (FinCEN) issued advisory FIN-2007-A001 in 2007 to inform U.S. financial institutions about the money laundering threat involving illicit Iranian activity, alerting them to the risk of deceptive practices involving shell companies, intermediaries, and requests to remove identifying information from transactions Guidance to Financial Institutions on the Increasing Money Laundering Threat Involving Illicit Iranian Activity | FinCEN.gov

United Nations Security Council Resolution (UNSCR) 1737 of December 23, 2006, requires all member states to prevent the provision to Iran of financial assistance, investment, brokering or other services, and the transfer of financial resources or services related to proliferation-sensitive nuclear activities Guidance to Financial Institutions on the Increasing Money Laundering Threat Involving Illicit Iranian Activity | FinCEN.gov

UNSCR 1747 of March 24, 2007, further addressed Iran's ongoing nuclear program and required member states to implement activity-based financial prohibitions Guidance to Financial Institutions on the Increasing Money Laundering Threat Involving Illicit Iranian Activity | FinCEN.gov

The FATF has advised jurisdictions to consider all customers and transactions associated with Iran as a primary risk determinant for the purposes of applying risk-based identification and enhanced scrutiny with respect to high-risk customers and transactions that may be related to activity prohibited by UNSCR 1737 Guidance to Financial Institutions on the Increasing Money Laundering Threat Involving Illicit Iranian Activity | FinCEN.gov

Iran is mentioned in the 2026 FinCEN advisory as remaining on the FATF High-Risk Jurisdictions list with four specific countermeasures, including refusing the establishment of subsidiaries or branches of financial institutions or VASPs from Iran and prohibiting financial institutions from establishing branches in Iran Financial Action Task Force Identifies Jurisdictions with Anti-Money Laundering, Combating the Financing of Terrorism, and Counter-Proliferation Finance Deficiencies | FinCEN.gov

The FATF in February 2025 reaffirmed countermeasures against Iran for the terrorist financing risk emanating from that country FATF Advances Work Combatting Proliferation Financing, Reaffirms Countermeasures Against Iran | U.S. Department of the Treasury

Iran's lack of a comprehensive anti-money laundering and combating the financing of terrorism (AML/CFT) regime represents a significant vulnerability within the international financial system, as determined by FATF Guidance to Financial Institutions on the Increasing Money Laundering Threat Involving Illicit Iranian Activity | FinCEN.gov

The FATF statement of concern dated October 11, 2007, noted that "FATF members are advising their financial institutions to take the risk arising from deficiencies in Iran's AML/CFT regime into account for enhanced due diligence" Guidance to Financial Institutions on the Increasing Money Laundering Threat Involving Illicit Iranian Activity | FinCEN.gov

Iran's deficiencies were also identified in the 2006 International Monetary Fund Article IV Consultation Report for Iran Guidance to Financial Institutions on the Increasing Money Laundering Threat Involving Illicit Iranian Activity | FinCEN.gov

The FATF called upon Iran "to address on an urgent basis its AML/CFT deficiencies" Guidance to Financial Institutions on the Increasing Money Laundering Threat Involving Illicit Iranian Activity | FinCEN.gov

The United States has designated Iranian entities, including Iranian state-owned Bank Saderat, under Executive Order 13224, which targets terrorists and those providing financial, technological, or material support to terrorists or acts of terrorism Treasury Responds to FATF's Call for Strengthened Measures Against Iran | U.S. Department of the Treasury

Iran remains subject to the FATF statement that called for countries throughout the world to strengthen measures to protect their financial sectors from risks posed by Iran Treasury Responds to FATF's Call for Strengthened Measures Against Iran | U.S. Department of the Treasury

The FATF is a 34-member inter-governmental body whose purpose is the development and promotion of policies to combat money laundering and terrorist financing Treasury Responds to FATF's Call for Strengthened Measures Against Iran | U.S. Department of the Treasury

The United Nations continues to adopt several resolutions implementing economic and financial sanctions, and Member States are bound by the provisions of these UN Security Council Resolutions (UNSCRs) Financial Action Task Force Identifies Jurisdictions with Anti-Money Laundering, Combating the Financing of Terrorism, and Counter-Proliferation Finance Deficiencies | FinCEN.gov

There is no recognized Iranian licensing regime for virtual asset service providers (VASPs) under the international AML/CFT framework; the FATF has not certified or recognized any Iranian licensing mechanism as compliant with its standards Financial Action Task Force Identifies Jurisdictions with Anti-Money Laundering, Combating the Financing of Terrorism, and Counter-Proliferation Finance Deficiencies | FinCEN.gov

The FATF requires jurisdictions to apply effective countermeasures on Iran, including "refusing the establishment of subsidiaries or branches or representative offices of financial institutions from the country concerned or otherwise taking into account the fact that the relevant financial institution or virtual asset service provider is from a country that does not have adequate AML/CFT systems" Financial Action Task Force Identifies Jurisdictions with Anti-Money Laundering, Combating the Financing of Terrorism, and Counter-Proliferation Finance Deficiencies | FinCEN.gov

No Iranian VASP licensing authority, application process, timeline, structural requirements, or capital requirements have been established; no Iranian regulator responsible for licensing cryptocurrency businesses has been identified Financial Action Task Force (FATF) Calls for Countermeasures on Iran, Evaluates U.S. AML Framework, Releases Digital Identity Guidance | U.S. Department of the Treasury

The FATF countermeasures include "prohibiting financial institutions from establishing branches or representative offices in the country concerned, or otherwise taking into account the fact that the relevant branch or representative office would be in a country that does not have adequate AML/CFT systems" Financial Action Task Force Identifies Jurisdictions with Anti-Money Laundering, Combating the Financing of Terrorism, and Counter-Proliferation Finance Deficiencies | FinCEN.gov

Zero entities have been licensed under any internationally recognized Iranian VASP licensing framework; no licensed cryptocurrency exchanges or virtual asset businesses in Iran have been documented FATF Advances Work Combatting Proliferation Financing, Reaffirms Countermeasures Against Iran | U.S. Department of the Treasury

Additional FATF countermeasures include "on a risk basis, limiting business relationships or financial transactions, including virtual asset transactions, with the identified country or persons in the country concerned" Financial Action Task Force Identifies Jurisdictions with Anti-Money Laundering, Combating the Financing of Terrorism, and Counter-Proliferation Finance Deficiencies | FinCEN.gov

The FATF also calls for "prohibiting financial institutions and virtual asset service providers from establishing new correspondent relationships and requiring them to undertake a risk-based review of existing correspondent relationships with financial institutions and virtual asset service providers in the country concerned" Financial Action Task Force Identifies Jurisdictions with Anti-Money Laundering, Combating the Financing of Terrorism, and Counter-Proliferation Finance Deficiencies | FinCEN.gov

Any business operating as a VASP in Iran would face automatic high-risk designation internationally, and the FATF has explicitly stated that the fact that a financial institution or VASP is from Iran is itself a signal of inadequate AML/CFT systems Financial Action Task Force Identifies Jurisdictions with Anti-Money Laundering, Combating the Financing of Terrorism, and Counter-Proliferation Finance Deficiencies | FinCEN.gov

The FATF has identified that Iran's lack of a comprehensive anti-money laundering and combating the financing of terrorism (AML/CFT) regime represents a significant vulnerability within the international financial system Guidance to Financial Institutions on the Increasing Money Laundering Threat Involving Illicit Iranian Activity | FinCEN.gov

FATF has called on all jurisdictions to impose effective countermeasures on Iran, such as requiring financial institutions to review, amend, or if necessary terminate correspondent relationships with Iranian banks or limiting business relationships or financial transactions with Iran Financial Action Task Force (FATF) Calls for Countermeasures on Iran, Evaluates U.S. AML Framework, Releases Digital Identity Guidance | U.S. Department of the Treasury

FATF members are advised to take the risk arising from deficiencies in Iran's AML/CFT regime into account for enhanced due diligence Guidance to Financial Institutions on the Increasing Money Laundering Threat Involving Illicit Iranian Activity | FinCEN.gov

Financial institutions should be particularly aware that there may be an increased effort by Iranian entities to circumvent international sanctions and related financial community scrutiny through the use of deceptive practices involving shell companies and other intermediaries or requests that identifying information be removed from transactions Guidance to Financial Institutions on the Increasing Money Laundering Threat Involving Illicit Iranian Activity | FinCEN.gov

Such deceptive practices may originate in Iran or Iranian free trade zones subject to separate regulatory and supervisory controls, including Kish Island Guidance to Financial Institutions on the Increasing Money Laundering Threat Involving Illicit Iranian Activity | FinCEN.gov

The FATF has advised jurisdictions to consider all customers and transactions associated with Iran as a primary risk determinant for the purposes of applying risk-based identification and enhanced scrutiny with respect to high-risk customers and transactions Guidance to Financial Institutions on the Increasing Money Laundering Threat Involving Illicit Iranian Activity | FinCEN.gov

The FATF countermeasure requires that on a risk basis, jurisdictions limit business relationships or financial transactions, including virtual asset transactions, with Iran or persons in Iran Financial Action Task Force Identifies Jurisdictions with Anti-Money Laundering, Combating the Financing of Terrorism, and Counter-Proliferation Finance Deficiencies | FinCEN.gov

No Iran-specific CDD, EDD, STR reporting, record retention, beneficial ownership, or PEP screening requirements exist because Iran has not established a recognized AML/CFT framework meeting FATF standards Financial Action Task Force (FATF) Calls for Countermeasures on Iran, Evaluates U.S. AML Framework, Releases Digital Identity Guidance | U.S. Department of the Treasury

The FATF has declared that Iran's lack of effort to combat terrorist financing continues to pose a serious threat to the integrity of the international financial system Treasury Responds to FATF's Call for Strengthened Measures Against Iran | U.S. Department of the Treasury

The FATF urged Iran to take urgent action to address these concerns, and the failure to do so has resulted in continued calls for countermeasures Treasury Responds to FATF's Call for Strengthened Measures Against Iran | U.S. Department of the Treasury

The FATF's February 2026 statement specifically highlights that Iran is subject to a call for action and that the organization continues to call on jurisdictions to apply effective countermeasures, including measures targeting virtual asset service providers Financial Action Task Force Identifies Jurisdictions with Anti-Money Laundering, Combating the Financing of Terrorism, and Counter-Proliferation Finance Deficiencies | FinCEN.gov

The U.S. Department of the Treasury has designated Iranian entities under Executive Order 13224, including Iranian state-owned Bank Saderat, which targets terrorists and those providing financial, technological, or material support to terrorists or acts of terrorism Treasury Responds to FATF's Call for Strengthened Measures Against Iran | U.S. Department of the Treasury

The FATF called on all countries to apply countermeasures on North Korea due to ongoing money laundering, terrorist financing, and weapons of mass destruction proliferation financing risks; Iran was separately and specifically identified for countermeasures Financial Action Task Force (FATF) Calls for Countermeasures on Iran, Evaluates U.S. AML Framework, Releases Digital Identity Guidance | U.S. Department of the Treasury

The FATF public statement on Iran reminds all jurisdictions of their obligations under the FATF standards to address proliferation financing risks emanating from Iran and reiterates the call for action to its members to apply effective countermeasures Financial Action Task Force Identifies Jurisdictions with Anti-Money Laundering, Combating the Financing of Terrorism, and Counter-Proliferation Finance Deficiencies | FinCEN.gov

In October 2008, the FATF expressed particular concern about Iran's lack of effort to combat terrorist financing and declared that this continues to pose a serious threat to the integrity of the international financial system Treasury Responds to FATF's Call for Strengthened Measures Against Iran | U.S. Department of the Treasury

The United States has repeatedly expressed deep concerns about Iran's financial and material support to deadly terrorist groups Treasury Responds to FATF's Call for Strengthened Measures Against Iran | U.S. Department of the Treasury

Sustained action against Iran by the FATF, United Nations Security Council, European Union and others verifies that the international community's grave concerns about Iran's conduct transcend borders and politics Treasury Responds to FATF's Call for Strengthened Measures Against Iran | U.S. Department of the Treasury

The FATF's call for countermeasures on Iran was reaffirmed in February 2025, with Secretary of the Treasury Scott Bessent stating that "The United States welcomes the FATF's reaffirmation of countermeasures against Iran for the terrorist financing risk emanating from that country" FATF Advances Work Combatting Proliferation Financing, Reaffirms Countermeasures Against Iran | U.S. Department of the Treasury

In February 2020, Secretary Steven T. Mnuchin stated that "Iran claimed it was finally ready to implement basic controls to counter illicit finance, but the regime has failed to live up to its commitments" Financial Action Task Force (FATF) Calls for Countermeasures on Iran, Evaluates U.S. AML Framework, Releases Digital Identity Guidance | U.S. Department of the Treasury

No tax guidance for virtual assets in Iran has been issued; available information focuses exclusively on Iran's AML/CFT deficiencies and international countermeasures, not domestic tax policy Guidance to Financial Institutions on the Increasing Money Laundering Threat Involving Illicit Iranian Activity | FinCEN.gov

No information about Iranian income tax, capital gains tax, or VAT treatment of cryptocurrency or virtual assets is available Financial Action Task Force Identifies Jurisdictions with Anti-Money Laundering, Combating the Financing of Terrorism, and Counter-Proliferation Finance Deficiencies | FinCEN.gov

No Iranian tax authority has been identified for purposes of virtual asset taxation FATF Advances Work Combatting Proliferation Financing, Reaffirms Countermeasures Against Iran | U.S. Department of the Treasury

Iran's continued designation as a High-Risk Jurisdiction Subject to a Call for Action means that any VASP operating in or from Iran faces automatic enhanced due diligence from international counterparties Financial Action Task Force Identifies Jurisdictions with Anti-Money Laundering, Combating the Financing of Terrorism, and Counter-Proliferation Finance Deficiencies | FinCEN.gov

A business operating in Iran's cryptocurrency sector would face the FATF countermeasure requiring jurisdictions to refuse the establishment of subsidiaries, branches, or representative offices of financial institutions or VASPs from Iran Financial Action Task Force Identifies Jurisdictions with Anti-Money Laundering, Combating the Financing of Terrorism, and Counter-Proliferation Finance Deficiencies | FinCEN.gov

Iranian VASPs would be subject to the FATF countermeasure requiring jurisdictions to prohibit financial institutions and VASPs from establishing new correspondent relationships with Iranian entities Financial Action Task Force Identifies Jurisdictions with Anti-Money Laundering, Combating the Financing of Terrorism, and Counter-Proliferation Finance Deficiencies | FinCEN.gov

The risk of deceptive practices, including shell companies, intermediaries, and stripping identifying information from transactions, has been identified as a specific concern for Iranian entities attempting to circumvent sanctions Guidance to Financial Institutions on the Increasing Money Laundering Threat Involving Illicit Iranian Activity | FinCEN.gov

Deceptive efforts may originate in Iran or Iranian free trade zones subject to separate regulatory and supervisory controls, including Kish Island Guidance to Financial Institutions on the Increasing Money Laundering Threat Involving Illicit Iranian Activity | FinCEN.gov

The practical reality is that Iran has no internationally recognized cryptocurrency regulatory framework, no compliant VASP licensing regime, and no travel-rule implementation recognized by FATF Financial Action Task Force (FATF) Calls for Countermeasures on Iran, Evaluates U.S. AML Framework, Releases Digital Identity Guidance | U.S. Department of the Treasury

Iran's FATF action plan obligations have not been fulfilled, and the country continues to face the same four countermeasures identified by FATF, including measures that specifically address virtual asset transactions Financial Action Task Force Identifies Jurisdictions with Anti-Money Laundering, Combating the Financing of Terrorism, and Counter-Proliferation Finance Deficiencies | FinCEN.gov

Any financial institution or VASP that does not apply adequate measures with respect to transactions involving Iran faces the risk of non-compliance with FATF standards and domestic regulatory obligations Financial Action Task Force Identifies Jurisdictions with Anti-Money Laundering, Combating the Financing of Terrorism, and Counter-Proliferation Finance Deficiencies | FinCEN.gov

The absence of a recognized Iranian regulatory framework for VASPs creates significant legal uncertainty for any business seeking to operate in the cryptocurrency sector in Iran, particularly regarding compliance with international AML/CFT obligations Guidance to Financial Institutions on the Increasing Money Laundering Threat Involving Illicit Iranian Activity | FinCEN.gov

The FATF has warned that the fact that a relevant financial institution or VASP is from a country that does not have adequate AML/CFT systems, such as Iran, should be considered in risk assessments Financial Action Task Force Identifies Jurisdictions with Anti-Money Laundering, Combating the Financing of Terrorism, and Counter-Proliferation Finance Deficiencies | FinCEN.gov

The travel-rule requirement, which mandates that VASPs obtain, hold, and transmit originator and beneficiary information for virtual asset transfers, cannot be effectively implemented in Iran without a compliant AML/CFT framework, which FATF has consistently found to be absent Financial Action Task Force Identifies Jurisdictions with Anti-Money Laundering, Combating the Financing of Terrorism, and Counter-Proliferation Finance Deficiencies | FinCEN.gov

Iranian entities may attempt to conceal their identity in transactions, and financial institutions are warned that requests to remove identifying information from transactions may be an indicator of illicit activity Guidance to Financial Institutions on the Increasing Money Laundering Threat Involving Illicit Iranian Activity | FinCEN.gov

Financial Action Task Force Identifies Jurisdictions with Anti-Money Laundering, Combating the Financing of Terrorism, and Counter-Proliferation Finance Deficiencies | FinCEN.gov

Guidance to Financial Institutions on the Increasing Money Laundering Threat Involving Illicit Iranian Activity | FinCEN.gov

Treasury Responds to FATF's Call for Strengthened Measures Against Iran | U.S. Department of the Treasury

Financial Action Task Force (FATF) Calls for Countermeasures on Iran, Evaluates U.S. AML Framework, Releases Digital Identity Guidance | U.S. Department of the Treasury

FATF Advances Work Combatting Proliferation Financing, Reaffirms Countermeasures Against Iran | U.S. Department of the Treasury

Banned for Domestic Payments: The Central Bank of Iran (CBI) has repeatedly banned the use of cryptocurrencies for domestic payments and transactions within Iran.

Restrictions on Domestic Exchanges/Trading: While some local exchanges operate, individual trading and holding of cryptocurrencies are generally discouraged, tightly regulated, or even de facto illegal for retail investors for speculative purposes by the CBI. There is no clear legal framework for individuals to legally trade cryptocurrencies on a large scale.

Legal for Imports (Under Specific Conditions): In 2022, Iran officially approved the use of cryptocurrencies for import payments as a way to circumvent international sanctions. This is typically for businesses and under strict governmental oversight.

Regulated Mining: Crypto mining is recognized as a legal industrial activity in Iran but requires licenses from the Ministry of Industry, Mine and Trade and is subject to specific regulations, including higher electricity tariffs.

Status: Legal, regulated industrial activity requiring licenses.

Income Tax: Licensed crypto mining operations are treated as businesses and are subject to standard corporate income tax rates. The income generated from mining (e.g., block rewards converted to fiat, or the sale of mined crypto) is considered business income.

Corporate Income Tax Rates: These vary based on factors like company type, profit levels, and whether they are listed on the stock exchange. Generally, the standard corporate income tax rate for Iranian companies is 25% of taxable income.

If the mining operation is considered to be providing a service (e.g., validating transactions) or selling its "product" (mined crypto) within Iran, it could potentially be subject to VAT.

However, the nature of crypto mining revenue (block rewards) often makes direct VAT application complex, especially if the "service" isn't directly sold to an identifiable domestic consumer.

If a mining farm sells its mined cryptocurrencies, and this is considered a sale of goods or services, then 9% VAT (the standard rate in Iran) could apply to the fiat equivalent value. However, clarification on this specific point for crypto sales is often lacking.

Reporting Requirements: Licensed mining businesses must comply with standard Iranian accounting practices, keep proper records, and file annual tax returns with the Iranian National Tax Administration (سازمان امور مالیاتی کشور).

Other Costs: Miners face significantly higher electricity tariffs compared to regular industrial users, which is effectively a form of indirect taxation or regulatory cost.

Status: Highly restricted, often considered illegal or at least strongly discouraged by the Central Bank for domestic speculative purposes. This makes a formal tax framework for individual gains largely moot.

There is no specific capital gains tax framework for individuals trading cryptocurrencies in Iran. Since the activity itself is largely prohibited or severely restricted for individuals, the government has not established a mechanism to tax these gains.

If an individual somehow realizes significant gains and brings them into the traditional financial system, they could theoretically be subject to scrutiny and potentially taxed under general income tax laws if deemed "undeclared income," but this is speculative and not based on a specific crypto capital gains tax.

Income Tax: No specific income tax provisions for individual crypto trading.

VAT/GST Treatment: Not applicable for individual trading activities.

Reporting Requirements: None specifically established for individuals trading crypto, precisely because the activity is not officially recognized or encouraged. Any attempts to declare such income would likely expose the individual to questions about the legality of their activities.

Status: Legalized for import payments, under specific governmental and CBI oversight.

Income Tax: If an Iranian business uses cryptocurrency to pay for imports or receive payments for exports, the underlying commercial transaction (import/export of goods/services) is subject to standard corporate income tax. Any profit or loss from the business activity itself is taxed in Iranian Rial equivalent.

Gains or losses arising from the fluctuation in the cryptocurrency's value before it's used or converted for the trade are generally absorbed into the company's overall profit and loss for tax purposes, as part of their foreign currency or asset management.

VAT/GST Treatment: VAT applies to the goods or services being imported or exported, not typically to the cryptocurrency itself as a payment method. Imports are generally subject to VAT upon entry. Exports are typically zero-rated.

Reporting Requirements: Businesses must comply with all standard import/export regulations, customs declarations, and financial reporting requirements, including accounting for cryptocurrency transactions in their books (valued in IRR at the time of transaction) and reporting to the Tax Affairs Organization. These transactions are likely subject to heightened scrutiny.

No Comprehensive Law: Iran does not have a comprehensive, dedicated "Cryptocurrency Tax Law" that details specific rates and rules for all virtual asset activities like some Western countries.

Existing Regulations: The existing regulations primarily focus on:

Licensing and operation of crypto mining farms: These regulations dictate how miners must operate and contribute to the grid, indirectly affecting their taxable base.

Bans and restrictions on domestic crypto use/trading: These effectively prevent the establishment of a formal tax framework for individual trading.

Framework for using crypto in international trade: This governs how businesses can use crypto for cross-border transactions under government oversight, fitting it into existing trade and corporate tax laws.

Notes: This is the primary tax authority. While you won't find a dedicated "Cryptocurrency Tax Guide" page, any taxation of legal crypto activities (like mining business profits) would fall under their general corporate income tax and VAT regulations. Their website is predominantly in Farsi.

Notes: The CBI is the main regulatory body for financial instruments and sets the legal status for cryptocurrencies. Their official announcements (often found in their news section) are crucial for understanding what is permissible and what is banned, thereby indirectly dictating what can be taxed.

Notes: This ministry is responsible for issuing licenses for cryptocurrency mining operations. Their regulations, though not directly tax-related, define the legal existence of mining businesses that are subsequently subject to tax.

Iran has not established a specific legal framework for cryptocurrency or digital asset securities as of 2025–2026, and no Iranian regulatory authority has issued a licensing regime for crypto securities Iran Sanctions FAQ - Office of Foreign Assets Control

The only applicable rules for Iran-based digital asset activity are U.S. sanctions regulations administered by the Office of Foreign Assets Control (OFAC) at the Department of the Treasury, which restrict U.S. persons and impose blocking requirements on Iranian financial institutions Federal Register :: Iranian Transactions and Sanctions Regulations

No Iranian government agency has been named as a securities regulator for digital assets, and no licensing pathway exists for crypto exchanges, custodians, or digital asset securities issuers within Iran Federal Register :: Iranian Transactions Regulations

In practice, no entity has secured any form of official authorization for digital asset securities activity in Iran, and the practical reality is that crypto securities businesses cannot operate legally or with regulatory certainty 31 CFR § 560.517 - Exportation of services: Iranian accounts at United States depository institutions or United States registered brokers or dealers in securities. | Electronic Code of Federal Regulations (e-CFR) | US Law | LII / Legal Information Institute

The primary legal constraint governing crypto-related activity is the Iranian Transactions and Sanctions Regulations (ITSR), 31 CFR Part 560, which imposes comprehensive trade and financial sanctions on Iran and prohibits most transactions involving Iranian accounts and securities services Iran Sanctions FAQ - Office of Foreign Assets Control

The Office of Foreign Assets Control (OFAC), part of the U.S. Department of the Treasury, is the primary authority that regulates transactions involving Iran, including any digital asset securities activity with Iranian nexus; OFAC's website is https://ofac.treasury.gov Federal Register :: Iranian Transactions and Sanctions Regulations

The Iranian Transactions and Sanctions Regulations (ITSR) are codified at 31 CFR Part 560 and were reissued in their entirety on October 22, 2012, effective the same date Federal Register :: Iranian Transactions Regulations

The ITSR implement Executive Order 13599 of February 5, 2012, which blocks property of the Government of Iran and Iranian financial institutions, and subsections 1245(c) and (d)(1)(B) of the National Defense Authorization Act for Fiscal Year 2012 (NDAA) Federal Register :: Iranian Transactions Regulations

The ITSR are separate from the Iranian Financial Sanctions Regulations, 31 CFR Part 561, which were reissued in their entirety on February 27, 2012, and implement the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 Federal Register :: Iranian Transactions Regulations

On May 17, 2024, OFAC published a final rule amending the ITSR to incorporate General License D-2, which relates to the export, reexport, and provision of certain services, software, and hardware incident to communications over the internet Federal Register :: Iranian Transactions and Sanctions Regulations

The original Iranian Transactions Regulations trace back to Executive Order 12613 of October 29, 1987, issued under the International Security and Development Cooperation Act of 1985 (22 U.S.C. 2349aa-9), which prohibited the importation of Iranian-origin goods and services Federal Register :: Iranian Transactions Regulations

Subsequent executive orders include Executive Order 12957 (March 15, 1995), which declared a national emergency regarding Iran and imposed prohibitions on certain transactions related to Iranian petroleum resources, and Executive Order 12959 (May 6, 1995), which imposed comprehensive trade and financial sanctions on Iran without blocking sanctions Federal Register :: Iranian Transactions Regulations

Executive Order 13059 (August 19, 1997) consolidated and clarified the previous orders governing Iran sanctions Federal Register :: Iranian Transactions Regulations

The ITSR was amended on March 10, 2010, to add a general license in § 560.540 authorizing the exportation of certain services and software incident to the exchange of personal communications over the internet, provided such services were publicly available at no cost to the user Federal Register :: Iranian Transactions and Sanctions Regulations

On May 30, 2013, OFAC issued General License D under the ITSR, authorizing the export or reexport, directly or indirectly, from the United States or by U.S. persons, to persons in Iran of additional services, software, and hardware incident to personal communications, including fee-based versions Federal Register :: Iranian Transactions and Sanctions Regulations

General License D-1 was issued on February 7, 2014, replacing GL D, and General License D-2 was issued on September 23, 2022, replacing GL D-1; GL D-2 removed the "personal" qualifier from the authorization and added modern services including social media platforms, collaboration platforms, video conferencing, e-gaming, e-learning platforms, automated translation, web maps, and user authentication services Federal Register :: Iranian Transactions and Sanctions Regulations

OFAC's regulations consider that operating a bank account for an individual or company in Iran constitutes an export of services to Iran in violation of the Iranian Transactions Regulations, and such accounts are restricted rather than blocked Iran Sanctions FAQ - Office of Foreign Assets Control

U-Turn payments for Iran have been prohibited as of November 10, 2008 Iran Sanctions FAQ - Office of Foreign Assets Control

The Iran Sanctions FAQ specifies that accounts with a W-8 form showing an address in Iran should be considered restricted in the absence of information proving the account holder is not in Iran Iran Sanctions FAQ - Office of Foreign Assets Control

Clients who are visiting Iran but are not ordinarily resident in Iran do not require account restriction Iran Sanctions FAQ - Office of Foreign Assets Control

OFAC's sanctions under the ITSR apply to U.S. persons wherever located, including overseas branches of U.S. financial institutions Iran Sanctions FAQ - Office of Foreign Assets Control

The FATF (Financial Action Task Force) status of Iran is not addressed within the provided source texts, and no Moneyval or FATF evaluation is mentioned in the supplied materials Federal Register :: Iranian Transactions Regulations

The Iranian Financial Sanctions Regulations define "U.S. financial institutions" to include depository institutions, banks, savings banks, money service businesses, trust companies, insurance companies, securities brokers and dealers, commodities exchanges, clearing corporations, investment companies, employee benefit plans, and U.S. holding companies or affiliates Iran Sanctions FAQ - Office of Foreign Assets Control

The Iranian Financial Sanctions Regulations define "foreign financial institutions" broadly to include foreign depository institutions, banks, savings banks, money service businesses, trust companies, securities brokers and dealers, commodities exchanges, clearing corporations, investment companies, employee benefit plans, and holding companies, affiliates, or subsidiaries of any of these entities Iran Sanctions FAQ - Office of Foreign Assets Control

Under the IFSR, the term "knowingly" means that a person has actual knowledge or should have known of specific conduct, a circumstance, or a result Iran Sanctions FAQ - Office of Foreign Assets Control

No licensing pathway exists under Iranian law for cryptocurrency exchanges, digital asset securities issuers, custodians, or any crypto-related business because the only applicable framework in the source texts is the U.S. OFAC sanctions regime, which does not provide for licensing of crypto securities businesses in Iran Federal Register :: Iranian Transactions and Sanctions Regulations

The ITSR provides for specific licenses that may be issued with respect to the operation of Iranian accounts that constitute accounts of foreign government missions and their personnel in Iran, or diplomatic missions of the Government of Iran to international organizations in the United States or the Iranian Interests Section of the Embassy of Pakistan in the United States 31 CFR § 560.517 - Exportation of services: Iranian accounts at United States depository institutions or United States registered brokers or dealers in securities. | Electronic Code of Federal Regulations (e-CFR) | US Law | LII / Legal Information Institute

United States depository institutions are authorized to provide limited services with respect to Iranian accounts other than blocked accounts, including maintenance of accounts, payment of interest, debiting of service charges, and closing accounts at the request of the account party who is not the Government of Iran or an Iranian financial institution 31 CFR § 560.517 - Exportation of services: Iranian accounts at United States depository institutions or United States registered brokers or dealers in securities. | Electronic Code of Federal Regulations (e-CFR) | US Law | LII / Legal Information Institute

United States registered brokers or dealers in securities are authorized to provide limited services including maintenance of Iranian accounts other than blocked accounts, payment of interest and dividends, execution of stock splits and dividend reinvestment plans, and one-time liquidation of all assets at fair market value upon account closing 31 CFR § 560.517 - Exportation of services: Iranian accounts at United States depository institutions or United States registered brokers or dealers in securities. | Electronic Code of Federal Regulations (e-CFR) | US Law | LII / Legal Information Institute

The authorization under 31 CFR § 560.517 specifically excludes accounts of the Government of Iran, Iranian financial institutions, or any other person whose property and interests in property are blocked pursuant to § 560.211 31 CFR § 560.517 - Exportation of services: Iranian accounts at United States depository institutions or United States registered brokers or dealers in securities. | Electronic Code of Federal Regulations (e-CFR) | US Law | LII / Legal Information Institute

The general license in § 560.540 authorizes the exportation of certain services and software incident to the exchange of personal communications over the internet only where such services and software are publicly available at no cost to the user Federal Register :: Iranian Transactions and Sanctions Regulations

General License D-2 authorizes cloud-based services and software in support of authorized software or services or of any other transaction authorized pursuant to the Regulations Federal Register :: Iranian Transactions and Sanctions Regulations

General License D-2 clarifies restrictions on the exportation of web-hosting services or domain name registration services Federal Register :: Iranian Transactions and Sanctions Regulations

No capital requirements expressed in EUR or USD are stated in the source texts for any licensing regime related to crypto or digital asset securities in Iran Iran Sanctions FAQ - Office of Foreign Assets Control

No application process or timeline for a crypto-related license in Iran is described in the provided materials because no such licensing regime exists Federal Register :: Iranian Transactions Regulations

Zero entities have been licensed by any Iranian authority for cryptocurrency or digital asset securities activity, as no such licensing framework is identified in the provided sources 31 CFR § 560.517 - Exportation of services: Iranian accounts at United States depository institutions or United States registered brokers or dealers in securities. | Electronic Code of Federal Regulations (e-CFR) | US Law | LII / Legal Information Institute

OFAC's General License D-2 was incorporated into the ITSR by a final rule effective May 17, 2024, but this license pertains only to internet communications services and software, not to digital asset securities Federal Register :: Iranian Transactions and Sanctions Regulations

The specific licensing policy expanded under GL D-2 relates to communications-related software and services, not to securities dealing, brokerage, or crypto activities Federal Register :: Iranian Transactions and Sanctions Regulations

There is no evidence in the source texts of any structural requirements imposed by an Iranian authority for digital asset securities businesses Iran Sanctions FAQ - Office of Foreign Assets Control

The source texts do not describe any AML/KYC requirements imposed by Iranian authorities for cryptocurrency or digital asset securities businesses, and no Iranian anti-money laundering rules for virtual assets are mentioned 31 CFR § 560.517 - Exportation of services: Iranian accounts at United States depository institutions or United States registered brokers or dealers in securities. | Electronic Code of Federal Regulations (e-CFR) | US Law | LII / Legal Information Institute

OFAC's Iranian Financial Sanctions Regulations include provisions related to money laundering as a sanctionable activity for foreign financial institutions, specifically identifying "engaging in money laundering, or facilitating efforts by the Central Bank of Iran or any other Iranian financial institution" as a sanctionable activity Iran Sanctions FAQ - Office of Foreign Assets Control

The term "knowingly" under the IFSR requires that a person has actual knowledge or should have known of specific conduct, a circumstance, or a result, which is relevant for AML compliance determinations Iran Sanctions FAQ - Office of Foreign Assets Control

U.S. financial institutions are required to block all property and interests in property of the Government of Iran, including the Central Bank of Iran, and all Iranian financial institutions that are in the United States, come within the United States, or come within the possession or control of U.S. persons Iran Sanctions FAQ - Office of Foreign Assets Control

The blocking requirement means that entities appearing with the IRAN tag on OFAC's List of Specially Designated Nationals and Blocked Persons (SDN List) must have their transactions blocked unless exempt or authorized by OFAC Iran Sanctions FAQ - Office of Foreign Assets Control

E.O. 13599 defines an "Iranian financial institution" as a financial institution organized under the laws of Iran or any jurisdiction within Iran, any financial institution in Iran, any financial institution wherever located owned or controlled by the Government of Iran, and any financial institution owned or controlled by any of the aforementioned entities Iran Sanctions FAQ - Office of Foreign Assets Control

An account with a W-8 form showing an address in Iran should be considered restricted unless the financial institution can prove to its satisfaction that the account holder is not in Iran Iran Sanctions FAQ - Office of Foreign Assets Control

The IFSR specifies that in determining whether a transaction is "significant," the Treasury Department may consider the size, number, frequency, and nature of the transaction, the level of awareness of management, the nexus with blocked entities, the impact on CISADA goals, whether deceptive practices are involved, and other factors Iran Sanctions FAQ - Office of Foreign Assets Control

A finding by the Treasury Department that a foreign financial institution knowingly engages in sanctionable activities is necessary before the Treasury Department can prohibit or impose strict conditions on correspondent accounts or payable-through accounts Iran Sanctions FAQ - Office of Foreign Assets Control

If the Treasury Department imposes strict conditions or prohibitions, it will issue an order or regulation published in the Federal Register or add the institution to the part 561 list Iran Sanctions FAQ - Office of Foreign Assets Control

No customer due diligence (CDD), enhanced due diligence (EDD), suspicious transaction reporting (STR), record retention, beneficial ownership, or PEP screening requirements from Iranian authorities are described in the provided source materials Iran Sanctions FAQ - Office of Foreign Assets Control

The source texts describe potential penalties under the IFSR, noting that any U.S. person who violates the correspondent account provisions may be subject to civil penalties of up to the greater of $250,000 or twice the transaction value, and criminal penalties for willful violations of up to $1 million and 20 years in prison Iran Sanctions FAQ - Office of Foreign Assets Control

A U.S. financial institution may be subject to civil penalties of up to the greater of $250,000 or twice the transaction value if any person it owns or controls violates the IFSR prohibition on engaging in any transaction with or benefitting the Islamic Revolutionary Guard Corps (IRGC) or its blocked affiliates, and if the U.S. financial institution knew or should have known of the violation Iran Sanctions FAQ - Office of Foreign Assets Control

The source texts do not describe any specific enforcement cases, fines, arrests, or penalties imposed on any entity for cryptocurrency or digital asset securities violations involving Iran Federal Register :: Iranian Transactions and Sanctions Regulations

No enforcement actions against named entities related to crypto and Iran are contained in the provided materials Federal Register :: Iranian Transactions Regulations

The IFSR provides that sanctions against foreign financial institutions may be waived if the Secretary of the Treasury determines that a waiver is necessary to the national interest of the United States Iran Sanctions FAQ - Office of Foreign Assets Control

The SDN List is described as dynamic, and designated persons include natural and legal persons; all interests in property of designated persons are blocked, including entities in which designated persons own a 50 percent or greater interest Iran Sanctions FAQ - Office of Foreign Assets Control

No tax guidance has been issued for virtual assets in the context of Iran, as the provided source texts do not address any taxation of cryptocurrency, digital asset securities, capital gains, income tax, or VAT with respect to Iran Iran Sanctions FAQ - Office of Foreign Assets Control

The source materials exclusively relate to U.S. economic sanctions administered by OFAC and do not contain any Iranian tax law provisions applicable to crypto or digital assets Federal Register :: Iranian Transactions and Sanctions Regulations

No Iranian tax authority, tax code, or fiscal regulation regarding virtual assets is mentioned in any of the provided source texts Federal Register :: Iranian Transactions Regulations

The ITSR provisions address export controls and financial sanctions, not tax treatment of digital assets 31 CFR § 560.517 - Exportation of services: Iranian accounts at United States depository institutions or United States registered brokers or dealers in securities. | Electronic Code of Federal Regulations (e-CFR) | US Law | LII / Legal Information Institute

There is a complete absence of any Iranian domestic legal framework for cryptocurrency or digital asset securities, and the only applicable rules in the provided sources are U.S. sanctions regulations Federal Register :: Iranian Transactions and Sanctions Regulations

The most significant gap is that no Iranian regulatory authority has been identified as responsible for overseeing, licensing, or supervising digital asset securities activity Iran Sanctions FAQ - Office of Foreign Assets Control

Businesses engaging in any crypto or digital asset securities activity with Iranian nexus face the risk of U.S. sanctions enforcement, including civil penalties of up to the greater of $250,000 or twice the transaction value, and criminal penalties of up to $1 million and 20 years in prison for willful violations Iran Sanctions FAQ - Office of Foreign Assets Control

Foreign financial institutions that facilitate significant transactions for the Islamic Revolutionary Guard Corps or blocked Iranian-linked financial institutions may be subject to prohibition or strict conditions on their U.S. correspondent accounts or payable-through accounts Iran Sanctions FAQ - Office of Foreign Assets Control

The risk of inadvertently engaging with blocked persons is heightened because OFAC considers a person to have an interest in all property and entities in which they own, directly or indirectly, a 50 percent or greater interest, even if those entities do not appear on the SDN List Iran Sanctions FAQ - Office of Foreign Assets Control

U.S. persons, including U.S. financial institutions and securities brokers or dealers, cannot provide services related to Iranian accounts linked to the Government of Iran, Iranian financial institutions, or blocked persons under § 560.517 31 CFR § 560.517 - Exportation of services: Iranian accounts at United States depository institutions or United States registered brokers or dealers in securities. | Electronic Code of Federal Regulations (e-CFR) | US Law | LII / Legal Information Institute

The restrictions on Iranian accounts mean that even routine securities maintenance activities, such as collecting dividends, executing stock splits, or liquidating positions, are limited to non-blocked accounts and cannot involve Government of Iran entities or Iranian financial institutions 31 CFR § 560.517 - Exportation of services: Iranian accounts at United States depository institutions or United States registered brokers or dealers in securities. | Electronic Code of Federal Regulations (e-CFR) | US Law | LII / Legal Information Institute

The U-Turn payment prohibition means that no fund routing through U.S. financial institutions for Iran-related transactions is permitted, which may affect crypto-to-fiat conversions Iran Sanctions FAQ - Office of Foreign Assets Control

The W-8 address indicator rule creates compliance risk for financial institutions, as an account showing an Iranian address must be restricted unless the institution can affirmatively prove the account holder is not in Iran Iran Sanctions FAQ - Office of Foreign Assets Control

The gap between the authorization for personal communications software and services under GL D-2 and any potential crypto activity is substantial, as GL D-2 explicitly covers social media, collaboration platforms, video conferencing, e-gaming, e-learning, automated translation, web maps, and user authentication services but does not mention digital assets or securities Federal Register :: Iranian Transactions and Sanctions Regulations

The practical reality is that no crypto securities business can operate in Iran with legal certainty, as there is no Iranian licensing authority, no registration mechanism, and no compliance pathway described in the available sources 31 CFR § 560.517 - Exportation of services: Iranian accounts at United States depository institutions or United States registered brokers or dealers in securities. | Electronic Code of Federal Regulations (e-CFR) | US Law | LII / Legal Information Institute

The blocking requirements under E.O. 13599 create significant operational risk for any financial institution that may encounter Iranian-linked digital asset transactions, since all property of the Government of Iran, the Central Bank of Iran, and Iranian financial institutions must be frozen Iran Sanctions FAQ - Office of Foreign Assets Control

Iran Sanctions FAQ - Office of Foreign Assets Control

Federal Register :: Iranian Transactions and Sanctions Regulations

Federal Register :: Iranian Transactions Regulations

31 CFR § 560.517 - Exportation of services: Iranian accounts at United States depository institutions or United States registered brokers or dealers in securities. | Electronic Code of Federal Regulations (e-CFR) | US Law | LII / Legal Information Institute