Tag: Wiehann Olivier

For years, one question has shaped South Africa’s crypto debate. It sounds simple, but it carries major legal consequences. If bitcoin is bought in South Africa and moved to a wallet linked to an offshore custodian, has capital left the country? The latest High Court ruling brings that question into sharper focus. It shifts attention away from what Bitcoin is. Instead, it focuses on what Bitcoin can do.

Thousands of South Africans who have traded or invested in crypto assets may soon face severe penalties. The South African Revenue Service (SARS) has started issuing letters to individuals suspected of undeclared crypto gains. Experts warn that those who fail to act now risk not only hefty fines but also potential criminal prosecution.

Figures released in the latest C-suite Barometer study, paint a positive picture for private equity and alternative investments, with 26% of global executives planning to use these channels to raise funds in the year ahead.

Cryptocurrency traders in South Africa are focused on understanding the tax implications of their transactions. These transactions are relative to the Income Tax Act. This has been challenging, as SARS has only stated that "the normal rules apply." They have not provided authoritative guidance on cryptocurrency-related transactions or when profits are considered capital or income.

Last month, two reputable South African virtual asset service providers in South Africa made history by issuing first-of-its-kind proof of reserve reports, a move that will assist to combat fraud, protect crypto holders and industry stakeholders, and help cultivate credibility for the local cryptocurrency market.

The infamous case of South Africa’s Mirror Trading International (MTI) has been crowned as the world’s largest cryptocurrency Ponzi scam. A total of around $589 million was lost, affecting hundreds and thousands of investors, according Chainanalysis’ 2020 Crypto Crime Report.

With the South African Bitcoin/ZAR weekly trading volume, to name just one, currently standing close to R30 million, there are various manners in which the South African Revenue Service (SARS) can track the gains made by South African taxpayers who trade cryptocurrencies.

Over the last few years we have seen various changes being made with regards to the International Financial Reporting Standards (IFRS) accounting framework, which includes new standards such as IFRS 15 (Revenue), IFRS 9 (Financial Instruments) and IFRS 16 (Leases), replacing the old IAS 18, IAS 32 and IAS 17 respectively.