There are many different cryptocurrencies, the most well-known being Bitcoin. Bitcoin is a convertible virtual currency, in other words, it has an equivalent value in real currency and can be exchanged back and forth for real currency. Cryptocurrencies are growing in popularity with a market capitalisation in excess of $150 billion.
Only the South African Reserve Bank, which governs the management of currency, has the sole right to issue legal tender in the form of bank notes and coins. Although cryptocurrencies are not regarded as legal tender, they are completely unregulated, and there are no laws preventing anyone accepting them as payment. There are three ways of receiving cryptocurrencies, namely, buying them on an exchange, receiving them as consideration for goods or services, and “mining”.
Because there are no specific tax provisions that deal with cryptocurrencies, general tax…
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Read this article by Graeme Palmer, Director, Garlicke & Bousfield Inc., as well as a host of other topical management articles written by professionals, consultants and academics in the December/January 2017/18 edition of BusinessBrief.
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