Cryptocurrency is on the rise in South Africa! At least that’s what recent statements from South African officials would have you believe
With Cryptocurrency having yet to find its feet in most parts of the world in regard to how governments perceive them, it’s nice to see what appears to be a step in the right direction from Tito Mboweni, South Africa’s Finance Minister.
Just last week, Mboweni announced by letter the founding of a group dedicated to cryptocurrency asset regulation and everything that comes with it. The work group includes key representatives from the Financial Sector Conduct Authority, Financial Intelligence Centre, Treasure, SA Revenue Service (Sars), and the Reserve Bank. The aim would be to establish an educated and well thought-out plan for where cryptocurrencies, and blockchain projects in general, should fall legally.
This comes from rising concerns that there is a significant number of people with assets in the form of crypto in South Africa, and that as much as 70% of holders see their tokens as securities, according to a November 2018 survey.
By the end of this year, Mboweni expects the group to publish their findings, which many are hoping can set an example for regulation standards across the region.
“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.”
An additional concern of the group is to set new rules for the taxation of cryptocurrencies, ensuring that South African taxpayers have proper ways to declare their digital assets.
“Work is underway 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 by means of a specific description field on the form.”
Regardless of how you feel about these developments, we’d be lying if we said we weren’t glad to see these new regulations being approached with caution, as an all-out ban like we’ve recently seen from the Central Bank of Zambia, would be unfavorable, to say the least.
Everything points to South Africa’s government trying to do it right when it comes to cryptocurrency