Iran Crypto Law: What You Need to Know

When looking at Iran crypto law, the collection of rules that govern cryptocurrency activity in the Islamic Republic. Also known as Iranian crypto regulations, it decides who can trade, mine, or issue digital tokens and what penalties apply for violations.

At its core, Iran crypto law belongs to the broader cryptocurrency regulation, government policies that define legal status, licensing, and compliance for digital assets. In Iran, this regulation is tightly linked to the regulatory sandbox, a controlled environment where blockchain startups can test products under temporary exemptions. The sandbox provides a bridge between innovation and the strict crypto exchange licensing, the formal approval process that requires capital, AML procedures, and government oversight required to operate a trading platform.

Key Components of Iran Crypto Law

First, the law categorises all crypto‑related activities as either “permissible with a licence” or “prohibited”. Mining farms that meet energy‑efficiency standards can apply for a special permit, while unregistered mining is subject to seizure and fines. Second, any entity that wants to run an exchange must obtain a licence from the Ministry of Economic Affairs and Finance, demonstrate a minimum net‑worth, and integrate real‑time KYC/AML monitoring tools.

Third, the law imposes a tax on capital gains from crypto sales. The tax rate mirrors the standard income‑tax brackets, but the calculation must be reported in Iranian Rials — a point that catches many traders off guard. Finally, the regulatory sandbox mentioned earlier allows fintech incubators to launch pilot token projects for up to 12 months without full licensing, provided they submit quarterly impact reports.

Enforcement has become more visible in recent years. Courts have started to hand down prison sentences for large‑scale promotion of unlicensed tokens, echoing the penalties seen in Egypt’s crypto‑promotion law. Bank accounts linked to crypto transactions are routinely flagged under the anti‑money‑laundering (AML) framework, and the Central Bank can freeze assets that appear to circumvent the licensing rules.

These enforcement actions create a clear semantic connection: Iran crypto law requires compliance with licensing, taxation, and AML standards. In practice, this means every trader, miner, or developer must map their operations to the legal checklist before launching any activity.

For businesses, the sandbox offers a useful stepping‑stone. By entering the sandbox, a startup can validate its smart‑contract logic, test token economics, and gather user feedback without the full burden of a licence. Once the pilot succeeds, the same team can transition to a fully licensed exchange, leveraging the data collected during the sandbox phase to meet regulatory expectations.

Investors also benefit from understanding the law’s tax component. Accurate record‑keeping of purchase price, sale price, and conversion rates to Rials helps avoid unexpected tax liabilities. Some firms now provide crypto‑tax calculators tailored to Iranian regulations, turning a compliance headache into a simple spreadsheet task.

Looking ahead, policymakers have hinted at expanding the sandbox to include decentralized finance (DeFi) protocols and non‑fungible token (NFT) marketplaces. If approved, this could open new avenues for creators and small‑scale financiers, while still keeping the core licensing and AML requirements intact.

All of these pieces—licensing, sandbox, tax, and enforcement—form a tightly knit ecosystem that shapes how digital assets move in Iran. Below you’ll find a curated list of articles that dive deeper into each aspect, from practical how‑tos on exchange licensing to real‑world examples of sandbox projects and tax‑reporting tips. Explore the collection to see how you can stay compliant, protect your assets, and make the most of Iran’s evolving crypto landscape.