SARS has marked crypto trading as a suspect trade, so any losses are ring-fenced to offset future crypto gains and not your entire income.So you have to pay tax on the R95,000..but you haven't sold any of it to rand yet? So I guess you pay tax with zar in your bank account? Now let's say the Lazy Ape NFT you bought for R195,000 crashed 90% so you make a R175500 loss.. now what, keeping in mind you haven't sold any of these crypto holdings to ZAR yet.. SARS pays you back?
Also, I may be mistaken on this: if you are trading crypto, crypto used for trading is seen as trading "stock" or "share", so every tax year you need to declare the value of your trading stock end February vs start of March of the tax year. So let's say you bought BTC for R650k in December 2020, by end February 2021, it was worth R750K, so as trading stock, you realised a 100K gain to your taxable income(minus costs etc) for 2021 without ever selling the BTC. I believe if you hold crypto as trading stock, then yeah, not selling doesn't mean no taxes.