South Africa Establishes Crypto Assets Regulatory Working Group

The finance minister of South Africa revealed this week that a regulatory working group had been formed which would release a research paper on crypto assets during 2019, as reported in the country's Business Day periodical. The working group is to comprise of representatives from relevant entities (Financial Intelligence Centre, Financial Sector Conduct Authority, Treasury, the Reserve Bank and the South African Revenue Service (SARS).)

A draft release of the research paper will be followed by a period of broad industry comment and participation, intended to lead to an imminent final draft.

SARS has proposed the clarification of income tax and value added tax (VAT) treatment of cryptocurrencies which appear in the Taxation Laws Amendment Bill of 2018. Some of the Bills' amendements would limit netting cryptocurrency losses only against cryptocurrency profits and, with regard to VAT, the treament of cryptocurrencies as financial services. Tax forms will also be amended appropriately, all of which will allow for SARS to better track cryptocurrency related activity.

 

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