Cryptocurrency crackdown in South Africa - everything SARB, FinSurv, and IFWG said so far

Jan

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Bitcoin crackdown in South Africa — what you should know

The Intergovernmental Fintech Working Group (IFWG) published its position paper on crypto assets earlier this month, promising to bring cryptocurrencies into the South African regulatory purview in a phased and structured manner.

However, in secondary documents published together with the paper, regulators showed that they also wanted to crack down hard on the nascent industry using existing exchange control regulations.

These crackdowns seem contrary to earlier statements made by the South African government to create a neutral and facilitative environment for crypto assets.

Earlier in June, National Treasury chief director Olaotse Matshane told the National Council of Provinces that South Africa is taking a cautious and facilitative "test and learn" approach to regulating crypto assets.
 
So reading up on Exchange Control Regulation 10(1)(c)
It only applies to SA residents.

I didn't really need more motivation to emigrate but my god they've done it.
 
All Crypto is off shore. I don't think these mafiosos understand crypto at all or deliberately pretending that if I have 1 BTC on luno or on a private wallet on my PC in SA then that BTC exists in SA. LMAO, good laugh.

Whether you trade on luno or on binance, the actual crypto is always stored off shores and not in the physical jurisdiction the company just so happen to operate from.
 
It's usually generally accepted the money you are left with after tax is at least "yours". Ethically (if not legally in SA) you have a natural (but not legal in SA) right to do what you want with your own money (all of it, not a limited "allowance"), e.g. buy forex, foreign shares, crypto, wherever you like.

So all these restrictions & limits are a violation of human rights - they constitute an illegitimate restriction by 'criminal' regulations on one's natural right to freely trade or invest one's own money.

They're also harmful and it's typically only oppressive governments that have such regulations. Capital controls are unjust and damaging to economic development in the long term - they damage the ability of businesses to grow in SA, so damage job growth - and while short-term they may seem to 'trap' skilled labor as 'virtual prisoners' in the local economy, in the long term they build resentment and massively drive up emigration of skilled labor - it's short sighted. (Can you picture entrepreneurs like Elon Musk saying "Let's build my business in SA" when they can't even e.g. buy more than $69K shares or crypto a year under the so-called "discretionary" "Allowance", & have to "repatriate" all revenue within 180 days? No, they say "goodbye" and build job-creating businesses elsewhere) ... countries like China have such capital controls to control and oppress the population

South Africans should try work together to legally challenge all these regulations - existing regulations and new regulations. They're an unjust abomination. https://www.thesait.org.za/news/567683/Disappearing-Exchange-Control.htm
 
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Soooo, clarity and regulation only about 6 or 7 years too late. So they make all local crypto traders criminals over-night by suddenly implementing laws for which the industry has been begging for clarity on for years? Boggles the mind...

So the elephant in the room, what about all the peeps that already sent crypto "off shore"? Everybody going to jail now? Why do they never answer the obvious questions? Or were we all "of course" supposed to have known this. Like we are all supposed to just know all the tax issues around crypto. That is why CLARITY is requested, so one knows how to handle situations.

Makes me so mad. The industry request clarity. Government drag their feet for YEARS, then they just pop out of the woodwork all of a sudden with laws left right and centre to criminalise large parts of the productive population.

How are these government bodies never taken to task for dragging their feet and leaving everybody guessing?
 
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All I read was if we make profits, they want a cut, and if we take a loss, "we told you it was a bad idea, sorry nê"

I feel like I want to and have to just post this on 80% of the articles. GFY!
 
Ironically the only people they needed to pay attention to were the ones who bought in 2010. That money has long flown the SARS coop.
 
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So somebody run this past me like the noob I am. Steps as follows:

1) Transfer money from my SA bank account to Luno
2) Use that money to buy crypto on Luno (XRP for eg)
3) Send that XRP to an exchange (Bitrue for eg)
4) Convert that XRP to another altcoin I am interested in
5) Send that altcoin to a wallet for safe keeping

This is in contravention of the ECR?

EDIT:

6) In a few years, bring any profit back into the country through Luno basically using the reverse process and pay CGT. Government gets their cut to line their pockets, I get enough to retire, everyone's happy...

EDIT EDIT: Isn't there a @Lunomoney rep who can clarify what is going on here with this whole ECR situation?
 
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Agent_Smith said:
So somebody run this past me like the noob I am. Steps as follows:

1) Transfer money from my SA bank account to Luno
2) Use that money to buy crypto on Luno (XRP for eg)
3) Send that XRP to an exchange (Bitrue for eg)
4) Convert that XRP to another altcoin I am interested in
5) Send that altcoin to a wallet for safe keeping

This is in contravention of the ECR?

EDIT:

6) In a few years, bring any profit back into the country through Luno basically using the reverse process and pay CGT. Government gets their cut to line their pockets, I get enough to retire, everyone's happy...

EDIT EDIT: Isn't there a @Lunomoney rep who can clarify what is going on here with this whole ECR situation?
Click to expand...
this is exactly what I'm thinking. are they going to put everyone who transferred money to other exchanges in prison LOL? good luck with that.
 
ninja cat said:
this is exactly what I'm thinking. are they going to put everyone who transferred money to other exchanges in prison LOL? good luck with that.
Click to expand...
I very much doubt there will be any retroactive action (bar maybe if you've moved tens of millions of rand).
 
What must I do with my crypto on an overseas exchange? Please assist
 
Veroland said:
What I don't see on there is if I am allowed to transfer crypto from my offshore wallet to my local privat wallet?
Click to expand...
Excon doesn't prohibit importing capital, only exporting so, iow, you can send an infinite amount to your local wallet.
 
Speedster said:
Excon doesn't prohibit importing capital, only exporting so, iow, you can send an infinite amount to your local wallet.
Click to expand...
Thanks, I didn't they would mind, more tax money

I wonder how they are planning on tracking people sending their crypto overseas from private wallets?
 
I don't understand their issue with international exchanges.

They haven't certified crypto as a currency, so Forex regulations don't apply. Crypto is an asset and you get taxed when you sell it for ZAR.

But if you cash out on an international exchange to a foreign bank account, you STILL pay taxes...if you aren't a resident, you pay tax in that country, if you ARE a ZA resident, you still get taxed in SA for those earnings...and if they already cover the taxes for foreign income with the latest ruling....so there's no need for a crypto ban.

Also, will this ruling be retroactive?

What if you have a hardware wallet? You transfer from ZAR bought Luno to a hardware wallet while you're on holiday in France for example. There's no "off shore" in crypto. The only off-shore rules that apply is when you CASH OUT.
 
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