South Africa is moving with more urgency to stiffen oversight of cryptocurrency assets after a proliferation of scams.
South Africa’s three largest cryptocurrency exchanges say they have been approached by the South African Revenue Service as part of a tax risk assessment exercise on residents.
A Financial Sector Conduct Authority health warning on cryptos comes amid a flood of complaints from investors who lost money or were scammed, says head of enforcement at the regulatory body, Brandon Topham.
As major financial hubs like Singapore redraw legislation to lure crypto firms, South Africa’s burgeoning exchanges say they are having to move headquarters abroad due to uncertainty over potential government regulation.
As bitcoin begins testing levels last seen at the peak of the end-of-2017 bubble, South Africa has yet another cryptocurrency exchange in an increasingly crowded market.
Cryptocurrency exchange Luno, previously backed by Naspers but now owned by Digital Currency Group, has launched a savings wallet, offering customers interest of up to 4%/year on their bitcoin holdings.