Recently, the South African government has shown solid attempts to control cryptocurrencies. Indeed, the agency has established a crypto assets regulatory team, which aims to examine current cryptocurrencies and blockchain-related activities in the country. The news was reported by the local news site BusinessLive on January 2.
The working team includes representatives from the Financial Intelligence Centre, Financial Sector Conduct Authority, Treasury, the Reserve Bank and the SA Revenue Service (Sars).
Tito Mboweni — the South African finance minister — declared:
“It is anticipated that, following broad industry comment and participation, the crypto assets regulatory working group will be ready to release a final research paper on the subject during the course of 2019.”
Later, he also informed that Sars was trying to trace the tax forms of cryptocurrencies in the following year. The taxation laws amendment bill of 2018 included amendments that, Mboweni explained, would ensure that losses may only be offset against profits from crypto.
“However, work is under way within Sars to consider the amendment of the tax forms for the 2019 tax season in order to cater for the description of other assets (which will include cryptocurrencies) by means of a specific description field on the form.”
He also mentioned, these acts would make clear that cryptocurrencies will no longer be classed as personal-use assets for capital gain tax purposes. Later on, the government will treat crypto as a financial service for VAT purposes.
According to the survey conducted by Old Mutual Limited, a Pan-African financial services company, 38% of South Africans wishing that they had invested in cryptocurrency before. Hence, these amendments are going to affect a considerably wide circle of crypto supporters in the nation.