Crypto purchases and foreign single discretionary allowance

[whatwhat]

I read some previous threads on MyBB however couldn't find anything recent.

If I link my bank account to Luno, and purchase USDT on it, does that count against my SDA (limit of 1 million a year before you need approval)
And if not, what happens when I transfer that money out of Luno to another exchange in another country?

Just curious since these exchanges all seem to be financial service providers now, so just curious what the trigger points if anyone knows.

 

[SauRoNZA]

I read some previous threads on MyBB however couldn't find anything recent.

If I link my bank account to Luno, and purchase USDT on it, does that count against my SDA (limit of 1 million a year before you need approval)
And if not, what happens when I transfer that money out of Luno to another exchange in another country?

Just curious since these exchanges all seem to be financial service providers now, so just curious what the trigger points if anyone knows.

As far as I know as long as it remains on the Luno exchange regardless of currency it is still considered “local” as they effectively hold it for you.

Only when you transfer it to a foreign exchange would it be considered as part of the allowance.

But @Snyper564 will know for sure.

 

[Pho3nix]

Honestly I think this is a grey area. One of those that SARB is trying to close by asking the exchanges to keep records.

 

[SauRoNZA]

Honestly I think this is a grey area. One of those that SARB is trying to close by asking the exchanges to keep records.

Yup I also think it’s a “right now” it works like this for a lack of clarity.

 

[Snyper564]

As far as I know as long as it remains on the Luno exchange regardless of currency it is still considered “local” as they effectively hold it for you.

Only when you transfer it to a foreign exchange would it be considered as part of the allowance.

But @Snyper564 will know for sure.

Allo so in short its a tricky one to monitor BUT upto R1m can be moved under your SDA and beyond that via an TCC obtained from SARS.

I can tell you SARB monitors, I can also tell you I have personally had both my wife and my bank accounts frozen and also blocked from all FX. Literally a month whilst their forensic team did detailed checks. All resolved in the end but there are penalties for overstepping those limits not worth it in my opinion.

If you can stick within your R1m SDA I dont forsee any issues and technically it will fall into your various allowances

sorry the purchase locally of any crypto even stable coins DOES NOT count to SDA the shift of that from luno to say kraken (EU) is what would trigger it. I am not here to argue the blockchain is everywhere any nowhere

 

[whatwhat]

Allo so in short its a tricky one to monitor BUT upto R1m can be moved under your SDA and beyond that via an TCC obtained from SARS.

I can tell you SARB monitors, I can also tell you I have personally had both my wife and my bank accounts frozen and also blocked from all FX. Literally a month whilst their forensic team did detailed checks. All resolved in the end but there are penalties for overstepping those limits not worth it in my opinion.

If you can stick within your R1m SDA I dont forsee any issues and technically it will fall into your various allowances

sorry the purchase locally of any crypto even stable coins DOES NOT count to SDA the shift of that from luno to say kraken (EU) is what would trigger it. I am not here to argue the blockchain is everywhere any nowhere

great, thank you!
I asked some friends of friends at Luno and they said it should work the same - only when you leave Luno does it go to SDA.

 

[Snyper564]

great, thank you!
I asked some friends of friends at Luno and they said it should work the same - only when you leave Luno does it go to SDA.

Also fyi

This doesn't mean stay away from crypto it means make sure your records etc are correct. Barring account frozen with sarb which was resolved after forensic audit as all was in order. Just make sure your housekeeping is good!

New travel rule means the end of crypto privacy

The new 'Travel Rule' mandates crypto exchanges to share client information when facilitating crypto transfers above R5 000 as part of its campaign to get SA off the grey list.

www.moneyweb.co.za

 

[Pho3nix]

Also fyi

This doesn't mean stay away from crypto it means make sure your records etc are correct. Barring account frozen with sarb which was resolved after forensic audit as all was in order. Just make sure your housekeeping is good!

New travel rule means the end of crypto privacy

The new 'Travel Rule' mandates crypto exchanges to share client information when facilitating crypto transfers above R5 000 as part of its campaign to get SA off the grey list.

www.moneyweb.co.za

Damn