South Africans could face trouble for buying Bitcoin from offshore exchanges

Love how government wants to control what we do with our money...OUR MONEY.
 
Purchasing to a degree yes...

But exchanges of cryptocurrency via offshore exchanges, and such.. which don't end up with money being brought back into ZAR would be way beyond them to monitor and track...
 
This stance seems to not appreciate the nature of crypto's. It's like the government saying you aren't allowed to send a "cross-border" or "offshore" email.

What about decentralized exchanges?
 
well duh... government wants its money.. Crypto is no different to anything else in that sense..
 
well duh... government wants its money.. Crypto is no different to anything else in that sense..

/liam neeson voice
"good luck"

how does sars intend to run after people who buy and pay for things using crypto I still dont know?
I mean the US IRS still struggling with that, so SARS, what chance do they have?
 
/liam neeson voice
"good luck"

how does sars intend to run after people who buy and pay for things using crypto I still dont know?
I mean the US IRS still struggling with that, so SARS, what chance do they have?

Liam Neeson isn't the one who says "Good Luck" in Taken.
 
/liam neeson voice
"good luck"

how does sars intend to run after people who buy and pay for things using crypto I still dont know?
I mean the US IRS still struggling with that, so SARS, what chance do they have?

Yep, seems like an impossible task but this wont stop them from trying to do this. Next thing it becomes regs the banks have to monitor and report on, targeting exchanges to where money flows for tax money..

I think of how the government will get Steam to pay tax or all the games South Africans purchase on there... im still not being charged tax. However, this is probably insignificant compared to the allure of crypto.
 
SARS: Bitcoin is not an currency... so please pay capital gains or income tax (which does not apply to currency gains, btw).

SARB: Bitcoin is a currency.. so please submit to forex rules.

Tsek, the lot of you.

Seriously though, I'm pretty sure the only time this will apply is if you bought crypto directly with Rands on a foreign exchange - and the act of making the money transfer or whatever mechanism you used would have required SARB clearance anyway, so this is all sheer FUD.

This is all actually quite an amusing quandary for SARS and SARB. If SARB decides to treat cryptocurrency as a currency, it brings in to question SARS assertion that it should be taxable as per any asset, since gains in the value of a currency in private hands does not attract tax.
 
if you buy from an offshore exchange you are essentially:
i) converting ZAR to a foreign currency,
ii) and then converting to crypto

it is part (i) that i imagine the sarb is looking at
 
if you buy from an offshore exchange you are essentially:
i) converting ZAR to a foreign currency,
ii) and then converting to crypto

it is part (i) that i imagine the sarb is looking at

And how exactly do you buy crypto directly in ZAR from a foreign exchange? The only way is via a local financial entity that will require you to comply with SARB requirements. So this is all basically pure FUD.

Most people, however, would have bought/mined Bitcoin locally and transferred to an offshore account for trading. Unfortunately for SARB, their stated policy so far is that Bitcoin is not a currency, in which case that type of transaction is not their jurisdiction. They can't have it both ways.
 
And how exactly do you buy crypto directly in ZAR from a foreign exchange? The only way is via a local financial entity that will require you to comply with SARB requirements. So this is all basically pure FUD.

there were people in one of the threads sometime back who said they were buying from foreign exchanges. if you have an account you can pay into i would guess it is possible with any of the big 4 banks to make such a payment

Most people, however, would have bought/mined Bitcoin locally and transferred to an offshore account for trading. Unfortunately for SARB, their stated policy so far is that Bitcoin is not a currency, in which case that type of transaction is not their jurisdiction. They can't have it both ways.

if you buy bitcoin using zar exchange. the exchange itself would at some point do a foreign currency transaction and that's where the sarb reporting would happen.
 
there were people in one of the threads sometime back who said they were buying from foreign exchanges. if you have an account you can pay into i would guess it is possible with any of the big 4 banks to make such a payment

Ever tried a foreign currency payment or transfer via one of the big four banks? Trust me, they won't do it without the required SARB clearances. In which case it's done already. If you already have foreign currency in a foreign account, it would presumably have gone through the process, otherwise, what asset you buy with it is a moot point.

if you buy bitcoin using zar exchange. the exchange itself would at some point do a foreign currency transaction and that's where the sarb reporting would happen.

Just nope. It has nothing to do with where a local exchange obtained the BTC. They're holding it locally. You buy it locally.
 
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