Reserve Bank of South Africa Gears Up to Regulate Cryptocurrency and Blockchain Technology

Cryptocurrency-in-South Africa

While the Reserve Bank of South Africa is yet to issue an official statement towards developing the cryptocurrency and blockchain technology in the country, Bitcoin – a form of digital currency, representatives from the Financial Intelligence Centre, Financial Sector Conduct Authority, Treasury, the Reserve Bank, and the South Africa Revenue Service (Sars) have been selected to make up the task force.

According to coininsider, the aim of the gathering is to develop “a cohesive governmental response to cryptocurrencies and a unified intergovernmental regulatory framework.

The South Africa’s Finance Minister Tito Mboweni says;

“The current income tax return forms do not take into account profits from cryptocurrency related businesses and Sars applies normal income tax rules to cryptocurrencies for those who have declared their asset holdings related to cryptocurrencies.”

Sars is tasked to find means on how best to trace the number of declarations pertaining to capital profits on cryptocurrencies as they want it to be taxable industry in South Africa.

The finance minister further says that;

“The Reserve Bank of South Africa will continue to work with financial services players to sensitise the public on the new ecosystem – cryptocurrency and blockchain technology but the people who are already doing it, need to be cautious when making cryptocurrency and blockchain transactions to avoid being duped. The final research paper on the subject will be released during the course of 2019.”  

The central bank is mandated to regulate all financial matters and that it’s up to it to come up with a position on the cryptocurrency and bitcoin technology.

The Ministry of Finance has since pledged to work with Reserve Bank of South Africa to decide the way forward on the issue.

According to information released on Sars website,

” The forum it is partaking, could as well provide an opportunity to draw out a comprehensive tax-inclusive model for crypto-related transactions in line with the tax inclusion of digital asset class.”

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