South Africa isn’t really known for its crypto activities, as the country only has three crypto ATMs according to Coin ATM Radar data. While its current stance towards crypto might not be on par with Malta and Gibraltar, South Africa is starting to implement its own regulations on the crypto world. Since the Bitcoin price boom in December 2017, South African interest in the crypto world has been growing and the current laws don’t fully cover all crypto activities. Government officials are seeking to change that by amending income tax and VAT laws, a move that could render cryptos and blockchain tech as a financial service – meaning no VAT is payable.
No VAT on Cryptocurrencies
Interestingly, if crypto transactions are exempt from VAT, then no VAT will be payable on the supply or sale of cryptos. This means that if you use an exchange such as Coinbase, they cannot charge VAT if they operate within South Africa. In addition to this, if the trading income is more than 1 million rand (just over $74,400) there is no need for suppliers to register for VAT – the contrary to current VAT laws in South Africa. However, VAT may still be deduced – or paid – on crypto related goods, such as mining rigs, electricity, and computers.
South Africa Joins the Crypto Revolution
South Africa is just one of the many countries around the globe getting prepared for the crypto revolution. In early July, Malta approved three crypto-friendly bills and passed them into law. More recently, the Bank of Thailand announced it will allow local banks to launch subsidiaries that deal in crypto. The blockchain and cryptocurrency world is slowly being accepted and welcomed into traditional financial settings, as well as in homes throughout the world.
Crypto Makes its Way into Everyday Life
Nature always finds a way, and crypto seems to be following suit. Without really thinking about it, many people have already come into contact with the crypto world, whether they know it or not. It could be something as secretive as a hidden mining script in a web browser or actually purchasing cryptocurrencies directly. Crypto is here to stay and enrich our lives, making them easier and more secure in the process.
The potential of cryptocurrencies and its underlying blockchain technology could revolutionize the world. Earlier this week, Canaan announced that a soon to be released TV set will mine crypto while you binge watch your favorite series – who knew that getting paid to watch TV was a thing?
The amendment to South African laws is currently open to public comments, so the government can obtain expert opinions – similar to the process Malta went through. This process is due to end shortly and the law reforms will be discussed in early October 2018. If South Africa amend the existing VAT laws to make crypto VAT exempt, the rest of Africa could follow suit, creating the first super-crypto continent.