Is forex in Iran a crime or not?

Is forex in Iran a crime or not : Today, with the progress in the foreign exchange market, forex is done legally in countries such as America, Russia, Turkey, Germany, Spain and many other countries. For example, North America is one of the countries that has set rules for forex and related economic activities. For this reason, Forex has many fans in this country. Many people are also making money through it. But this situation is different in Iran. You should keep in mind that, if you decide to invest in forex in Iran, you should be educated first. Then proceed to generate income from it.

Those who are looking for a way to invest have heard the word forex many times. Forex in a way means currency exchange. In other words, in this process, currencies are converted into each other. Due to this reasonable income generation, today Forex has gained many fans in many countries and has the following features:

It is a source of income.
Thousands of people register in it every day.
Thousands of transactions are made in it.
It is completely reliable.
You can easily invest your money in it.

Forex in Iran

First of all, we must point out that transactions on different currencies or currency pairs in markets called Forex have a long history. In fact, because of that, the currency values of two countries are measured against each other and, in other words, they are compared.

But despite all the positive points for forex, this profitable market is illegal in Iran. In this regard, the legislator admits that people with losses in this market cause the loss of the country’s capital. But it should not be overlooked that if people are trained in this work, they will not only cause the loss of the country’s capital, but also increase the capital. Due to the ban on forex in Iran, individuals and companies operating in this field are punished based on the type and extent of their activity. Also, because of this activity, a case is filed for them in the judicial system.

Forex problem in Iran

From our explanations so far in this article, forex is one of the largest financial markets in the world. In it, users exchange foreign currencies with each other. The main traders of this market are:

Large financial institutions
multinational companies
traders
Insurance Companies
Export and import companies
Pension funds
Speculators and natural persons who trade different currencies such as dollars, euros and pounds in the market.
But as we mentioned in the previous section, forex is prohibited in Iran. In other words, the activities of brokerage offices and forex companies were declared illegal by the Tehran Stock Exchange Organization in 2013. The problems that cause this ban are as follows:

The most important discussion in this field is the withdrawal of currency from Iran. Because in order to participate in forex transactions, you have to buy rials in dollars. This issue causes currency to leave the country.
The possibility of large losses in forex is the next reason. The nature of the forex market is different from the full stock market. You can get loans up to 500 times the initial capital on your transactions. Without the knowledge of capital management, this process will not only not make you profit, but because of greed, it can be several times more lossy.

Forex punishment in Iran

In this section, after examining the ban on forex in Iran and its reasons, we would like to point out the punishments for this discussion. Thank you for your cooperation. According to the laws governing Iran, the capital obtained from forex is not Shariah. The reason for the illegality of this market is the existence of widespread frauds in other parts of the world. This has caused forex to be banned in Iran. In case of acquiring money from forex, this money is considered illegal. As a result, it will have its own punishment. The punishments for this discussion are:

According to Article 49 of the Securities Law, anyone who engages in such activities will be punished with one to six months of imprisonment, a fine of three times the profit, or both.
Those who have lost their capital in such activities will not be severely punished. Because these people are known as victims.
However, unlike the previous case, the punishment of forex brokers is heavy. Also, these people will be wanted.

Disadvantages of forex in Iran

In this section, we describe some of the disadvantages of forex in Iran. These disadvantages are as follows:
High risk: One of the biggest disadvantages of this market is its high risk. In fact, the exchange rate of currency pairs is extremely volatile. This issue causes fluctuation.
Ability to use high leverage: In this market, it is possible for anyone to use high leverage. This issue causes them to lose their capital due to the use of some of these levers.
Lack of transparency: One of the disadvantages of this market is the lack of transparency in its various dimensions. The reason is the complete control of brokers over them.
The complexity of the learning path: operating in this market is not easy. A lot of practice should be done before entering it. When some people enter this market, they stop at the beginning and are disappointed to continue.
Effect of interest rate: Another disadvantage of this market can be called the effect of interest rate on forex transactions. Interest rates in countries can affect the value of different currencies in forex.

Forex tax in Iran

In this section, in order to conclude, we would like to examine the issue of taxation for forex in Iran. Although this issue is less noticed, it is of great importance.
In general, the laws in different countries regarding forex tax are different. For example, in western countries, the income obtained from forex markets is taxed. Also, people believe that this tax is fair. Of course, if you do not make a profit in this market, you will also be exempted from paying taxes.
In Iran, due to the lack of proper legislation in this field and the prohibition of this issue, tax laws do not apply at the moment. But if the existing laws change, one of the important points for you will be to consider the tax of your activity in this area.