Fun

South African Crypto Investors and Service Providers Told of Legal and Tax Implications of Central Bank’s Plan

News Feed - 2022-07-17 07:07:43

South African Crypto Investors and Service Providers Told of Legal and Tax Implications of Central Bank"s Plan


South African tax consultancy firm Tax Consulting SA, has said the recent announcement by the central bank — that will start to regulate cryptocurrency in 12 to 18 months — has legal and tax implications for both crypto investors and organizations providing intermediary services. The firm, however, says the South African Reserve Bank (SARB) “will not interfere in the investment decisions made by crypto investors.” Intermediaries Must Register as Financial Services Providers


According to a South African tax consultancy firm, Tax Consulting SA, recent revelations by the central bank deputy governor that his institution intends to regulate cryptocurrency in 12 to 18 months, means cryptos “will soon be regulated under the Financial Advisory and Intermediary Services (FAIS) Act.” This, therefore, means all organizations or individuals deemed to be providing intermediary or advisory services will be required to register as financial services providers with relevant bodies.


In a report shared with Bitcoin.com News, Tax Consulting SA predicts that as the next step, SARB will introduce know your customer (KYC) procedures and exchange control regulations. The consulting firm is, however, quick to point out that the South African Reserve Bank (SARB) “will not interfere in the investment decisions made by crypto investors.”




Instead, the central bank will issue the so-called “health warnings” and provide adequate protection to investors who are at risk of losing everything. While acknowledging that the SARB has not outlawed cross-border crypto trading and investment, the consulting firm insists that investors will still have to adhere to certain reporting standards. Tax Implications


The tax firm’s report in the meantime warned of possible tax implications that may arise which crypto investors must be aware of. The report states: Another concern will be in relation to tax compliance, for example, as tax evasion will be much more easily detectable with transactions falling under the purview of the SARB’s Financial Intelligence Centre (FIC).


Once the regulatory framework is in place, non-compliance will be easier to spot and at that point, South Africa’s “wild west” crypto industry will be a thing of the past, the report concludes. Tax Consulting SA also warns that during this period prior to the introduction of the regulatory regime, “crypto investors [need] to ensure that they are up to date with their compliance obligations.”


Register your email here to get a weekly update on African news sent to your inbox:

Tags in this story crypto regulatory framework, Crypto tax, Financial Advisory and Intermediary Services (FAIS) Act, KYC, South Africa crypto investors, South African Reserve Bank (SARB), Tax Consluting SA, tax evasion


What are your thoughts on this story? Let us know what you think in the comments section below. Terence Zimwara


Terence Zimwara is a Zimbabwe award-winning journalist, author and writer. He has written extensively about the economic troubles of some African countries as well as how digital currencies can provide Africans with an escape route. Paraguayan Senate Approves Cryptocurrency Bill REGULATION | 1 hour ago Sri Lanka"s Central Bank Warns About Crypto Amid Severe Economic, Political Crisis REGULATION | 19 hours ago


Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleOver Half of This Year’s Financial Pyramids in Russia Involved Crypto, Bank of Russia Finds Next articleYieldTopia the First Yield Protocol to Offer High APY Rewards That Are Backed by a Utility-Driven Ecosystem Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItOman to Incorporate Real Estate Tokenization in Virtual Assets Regulatory Framework


Real estate tokenization is set to be incorporated into Oman Capital Markets Authority (OCMA)"s virtual asset regulatory framework. According to an advisor with the authority, the tokenizing of real estate will open investment opportunities for local and foreign investors. Real ... read more.Bitcoin ATM Operator Indicted in New York Allegedly Running Illegal Business Attracting Criminals Bill ‘On Digital Currency’ Caps Crypto Investments for Russians, Opens Door for Payments Microbt Reveals Latest Bitcoin Mining Rigs — Machines Produce up to 126 TH/s With Custom 5nm Chip Design Terra"s Algorithmic Dollar-Pegged Crypto UST Is Now the Third-Largest Stablecoin

News Feed

Tristan Greene5 hours agoBitcoin drives digital asset inflows for the first time in 6 weeks: ReportSolana was the only other major asset to show inflows for the week.1512 Total views20 Total sharesListen to article 0:00N
Will India Ban Crypto? 5 Exchange Executives Shed Light on the Truth
Will India Ban Crypto? 5 Exchange Executives Shed Light on the TruthThere has been some confusion over whether India will ban cryptocurrency, including bitcoin, following recent rep
Will DOGE reach $1 this cycle? It's a 'crapshoot,' say analysts
Ciaran Lyons4 hours agoWill DOGE reach $1 this cycle? It"s a "crapshoot," say analystsDogecoin has “historical heritage” but whether it hits a one-dollar price target is still a risky bet.13514 Total views6 Total sha
Julian Assange to be freed after reaching plea deal with US
Jesse Coghlan26 minutes agoJulian Assange to be freed after reaching plea deal with USThe Wikileaks founder is expected to plead guilty to one U.S. charge and be sentenced for time served in a U.K. prison.249 Total views
Reddit Reportedly Testing NFT Profile Pic Functionality
Reddit Reportedly Testing NFT Profile Pic Functionality Reddit, one of the largest micro-posting sites on the internet, is reportedly venturing further into the world of non-fungib
Defi Protocol Abracadabra’s Stablecoin MIM Briefly Slides to $0.91 During the Crypto Market Rout
Defi Protocol Abracadabra"s Stablecoin MIM Briefly Slides to $0.91 During the Crypto Market Rout Amid the crypto market carnage this weekend, another stablecoin slipped below the $
Mempool Clog: Bitcoin Hashrate Drops 40%, Backlog Shows Over 100K Unconfirmed Transactions
Mempool Clog: Bitcoin Hashrate Drops 40%, Backlog Shows Over 100K Unconfirmed Transactions The Bitcoin network hashrate has dropped significantly over the last f
Ethereum To Outpace Solana In 2025, Bitwise CIO Asserts
Este artículo también está disponible en español. As 2025 draws near, market experts are talking a lot about how much Ethereum and Solana are competing with each other. B
Robinhood Q1 crypto trading surges 224% — SEC action ‘disappointing’
Brayden Lindrea8 hours agoRobinhood Q1 crypto trading surges 224% — SEC action ‘disappointing’Robinhood’s crypto services contributed to nearly 40% of the firm’s transaction-based revenue and helped the firm pr
Phemex Is a Rebellion Against Traditional Finance, and It’s Winning
Phemex Is a Rebellion Against Traditional Finance, and It’s Winning sponsored Wall Street is often touted as the place where dreams come to life, but the world’s economic e
History Associates joins Coinbase in FDIC legal battle
Amaka Nwaokocha34 minutes agoHistory Associates joins Coinbase in FDIC legal battleThe History Associates suit aims to hold the FDIC and other regulatory agencies accountable for their actions and ensure transparency in
Fee war breaks out among spot Ether ETF issuers ahead of listings
Alex O’Donnell7 hours agoFee war breaks out among spot Ether ETF issuers ahead of listingsFranklin Ethereum ETF (EZET) has emerged as the fee race’s frontrunner.2395 Total views5 Total sharesListen to article 0:00New