SARB appeals court ruling declaring cryptocurrency is not money in South Africa

Hanno Labuschagne

Hanno Labuschagne

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SARB appeals court ruling declaring cryptocurrency is not money in South Africa

The South African Reserve Bank (SARB) has applied for leave to appeal a recent court ruling which found that cryptocurrency is not money and doesn’t fall within existing exchange control regulations.

Specifically, it said the Pretoria High Court erred in finding that cryptocurrency is not considered money for the purposes of South Africa’s Exchange Control Regulations (Excon).
 
I don't see what the relevance is of whether or not cryptocurrency is money. Exchange controls apply to all forms of capital, it's completely irrelevant whether crypto is considered money or currency. In any case, it's high time that ALL exchange controls are done away with.
 
PCWARITM said:
Exchange control: it’s money!
SARS: it’s an asset!
Also SARS: it’s a short term investment

Gimme!!!
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It happens worldwide. Different government departments regard them differently for their own agendas.
 
deweyzeph said:
I don't see what the relevance is of whether or not cryptocurrency is money. Exchange controls apply to all forms of capital, it's completely irrelevant whether crypto is considered money or currency. In any case, it's high time that ALL exchange controls are done away with.
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It matters as assets are treated differently and some can be transferred (physically) while others can't. Whether I sell my house to a foreigner or locally is of no business to SARB until I take it over the border. Crypto is neither here not there so the 60 year old regulations from when such concepts didn't exist can't possibly apply to it practically. I do agree on the controls and it's way past time the issue gets taken to parliament.
 
PCWARITM said:
Exchange control: it’s money!
SARS: it’s an asset!
Also SARS: it’s a short term investment

Gimme!!!
Click to expand...

Money is an asset but not all assets are money. If SARS thought cryptoassets were money it would apply the mark to market rules for foreign currency in the Income Tax Act. It doesn't. The last guidance I saw from SARS indicated that cryptoassets could be taxed as ordinary income or as capital gains, based on existing case law, so I’m not even seeing where your last comment comes from.
 
Mercury said:
Money is an asset but not all assets are money. If SARS thought cryptoassets were money it would apply the mark to market rules for foreign currency in the Income Tax Act. It doesn't. The last guidance I saw from SARS indicated that cryptoassets could be taxed as ordinary income or as capital gains, based on existing case law, so I’m not even seeing where your last comment comes from.
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So how does SARS treat income from short term investments like the income made from currency trading then?
 
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PCWARITM said:
So how does SARS treat income from short term investments like the income made from currency trading then?
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Depends. If it's short term investments with the intent to sell it's ordinary income tax. If it's trading there are additional provisions like paying tax on unrealised gains at the end of the financial year.
 
CRYPTO banks ade available nation wide, ATM'S like CRYPTO express ade there
 
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