In the past few months, there has been a significant increase in the administration and enforcement of exchange control laws, with our clients receiving compliance requests and enforcement demands issued by the South African Reserve Bank.

Blockchain’s interface with traditional institutions and financial systems provides revenue authorities with a digital trail, and with the growing risk of tax evasion and fraud in crypto-investments, authorities are incentivized to pursue recalcitrant taxpayers. Aside from good governance considerations, the financial risks of tax non-compliance are high. This article looks at recent developments in tax regulations for cryptocurrency in South Africa.