Breaking News

Why South Africa wants to regulate cryptocurrencies

by Staff Writer
03 May 2019 | 2417 Views
South Africa as a financial market participant has been on the rise in the last decade or so. Their prowess in financial knowledge, the growth of their economy, alongside the private equity indicator is proof that the quality of life is on its way towards improvement.

However, what shocked everybody in the world, was the survey conducted to find out which country has the most cryptocurrency literacy. Judging from the results, it's safe to say that in terms of literacy South Africa may not be #1, but is definitely the country with the largest possession of cryptocurrencies among its internet users.

Such a revelation had a massive impact on how the local government looks at cryptocurrencies as a whole. Thanks to technology's feature of being anonymous, it was very hard to determine the exact scale of the industry inside SA. The size of this market brings in, opportunity as well as multiple problems for the local government.

Loss of control over SA's gambling market
The South African government devotes quite a lot of attention to their local gambling market. Ever since the 1996 Gambling Act, the country has been doing relatively fine in terms of keeping the industry under control. This was all thanks to the payment methods that could be tracked, and the mandatory license that online operators had to apply for. But now, seeing how cryptocurrencies are slowly starting to dominate the online gambling market, SA's government is fearful of the loss of control over their local market.

According to experts from, foreign gambling operators have the capability of catering to SA's gambling population without having to apply for a license. In fact, they don't even have to market it as a SA exclusive platform, all they need to do is provide a cryptocurrency payment platform. The players themselves would be able to access it without any issues and make transfers without the government or anyone else ever finding out.

This loss of local capital, customer base and the missed revenue from licenses and taxing is definitely not beneficial for SA, however, the potential massive influx of crypto companies within the country prevents them from introducing a crippling regulation.

Potential for additional tax income
There is no government in this world that would refuse a new source of income, and South Africa is not an exception. Currently, their regulatory framework does allow them to collect taxes from the companies located within the country, but the collection of taxes on profits from crypto trading still remains to be quite hard.

If the regulations are tightened and the companies are forced to disclose information about their customers' trading activities, it is pretty much guaranteed that the volume will go down. There are dozens of crypto exchanges that operate internationally and don't need to conform to such rules unless directly confronted by local authorities.

An introduction of stricter regulations is going to hit the SA crypto market in its core, in its potential. Most of the companies that are considering to move their base of operations there would simply opt out due to changing conditions. And the traded volume with local operators would decrease as well. In conclusion, the SA government would be shooting itself in the foot.

cryptocurrencies South Africa tax income

Source: Byo24News


Latest News

Coltart still detained

by Mandla Ndlovu | 24 August 2019 | 1 Views

Sick General Chiwenga returns home?

by Mandla Ndlovu | 24 August 2019 | 1 Views

Zimbabweans ignorant - Trevor Ncube

by Staff Reporter | 24 August 2019 | 1 Views

Chamisa visits jailed Chief Ndiweni

by Ndou Paul | 24 August 2019 | 4 Views

'God is not happy with Mnangagwa' Chiwenga says

by Mandla Ndlovu | 24 August 2019 | 1 Views

'Chief Ndiweni could be poisoned in prison'

by newzimbabwe | 24 August 2019 | 12 Views

Pastor 'expels' congregant for not tithing? - A REVEREND with Church o...

by Staff reporter | 24 August 2019 | 14 Views

Businessman sleeps with own mother to boost wealth - A businessman fro...

by Staff reporter | 24 August 2019 | 9 Views

Afcon renegades blacklisted

by Staff reporter | 24 August 2019 | 4 Views

Tenant locks landlord out of house - A Bulawayo woman regrets offering...

by Staff reporter | 24 August 2019 | 6 Views

Woman miscarries after being kicked over $1,50 - A THREE months pregna...

by Staff reporter | 24 August 2019 | 4 Views

Policeman flees to a toilet for safety - In a dramatic incident a poli...

by Staff reporter | 24 August 2019 | 4 Views

Children accuse mother of witchcraft

by Staff reporter | 24 August 2019 | 16 Views

Woman threatens to kill ex-lover's pregnant wife - There was drama in ...

by Staff reporter | 24 August 2019 | 5 Views

Police crush teachers' demo - POLICE yesterday ruthlessly crushed a de...

by Staff reporter | 24 August 2019 | 12 Views

Illicit brew kills one, 3 hospitalised - One person died at St Alberts...

by Staff reporter | 24 August 2019 | 4 Views

Mnangagwa urges farmers to adopt new technology - President Emmerson M...

by Staff reporter | 24 August 2019 | 5 Views

Mudenda's Gukurahundi remarks ignite storm - A PROPOSAL by Speaker of ...

by Staff reporter | 24 August 2019 | 1 Views

Kazembe Kazembe fights for his party position

by Staff reporter | 24 August 2019 | 1 Views

Chamisa ally to spend weekend in remand prison

by Staff reporter | 24 August 2019 | 4 Views

Man (32) subjects woman (61) to bizarre 'rape ordeal' - A 32-YEAR-OLD ...

by Staff reporter | 24 August 2019 | 13 Views

Zanu-PF Masvingo seeks Zivhu expulsion

by Staff reporter | 24 August 2019 | 1 Views

Technical faults at Hwange cause for prolonged load shedding

by Staff reporter | 24 August 2019 | 6 Views

Econet closes shop in 13 countries - BILLIONAIRE and Zimbabwe's teleco...

by Staff reporter | 24 August 2019 | 5 Views

Kambarami didn't have powers to suspend Town clerk, says High Court

by Staff reporter | 24 August 2019 | 3 Views

Zimbabwe hit by birth control pills shortage - ZIMBABWE is facing a co...

by Staff reporter | 24 August 2019 | 5 Views

BCC disconnects water supplies to defaulting rate payers - BULAWAYO Ci...

by Staff reporter | 24 August 2019 | 1 Views


Top 5 PS2 ISOS to play with friends you can get right now

by Staff Writer | 21 August 2019 | 145 Views

Rebecca Malope retires

by Mandla Ndlovu | 20 August 2019 | 5845 Views

Zimfest delivers another 'phenomenal' festival

by Tidi Kwidini | 07 August 2019 | 640 Views

Should you be betting on reality TV show outcome too?

by Staff Writer | 05 August 2019 | 95 Views

WATCH: Jah Prayzah featuring Iyasa Sadza nemuriwo song

by Mandla Ndlovu | 23 July 2019 | 5732 Views

Muvhango star Marang Phala visits Prophet Sovi's church

by Mandla Ndlovu | 22 July 2019 | 9660 Views

Pure Black set to take Africa by storm

by Mandla Ndlovu | 04 July 2019 | 1004 Views

Ios 9 Features Inspired By Android

apple announced ios 9 on monday, and while watching the keynote, i had just a little bit of déjà vu. most of ios 9's new features seem to be squarely aimed at apple's biggest rival in mobile: android. specifically, they were about catching up to ... Read More
Sergey 13 June 2015 ago

Hp Omen 15-5116tx – The Next Generation Gaming Laptop

the hp omen 15-5116tx is being targeted at the performance hungry gamers. it comes in a single variant boasting an eye-catching attractive design. the notebook offers a slim, lightweight chassis and appears like a piece of art than an actual gaming... Read More
Sergey 11 June 2015 ago