Crypto Regulatory Working Group Set By South Africa

Job Appointments | January 5, 2019 By:

South Africa has created a dedicated regulatory working group on cryptocurrency and blockchain.

Finance minister Tito Mboweni said the working group includes representatives from the Financial Intelligence Centre, Financial Sector Conduct Authority, Treasury, the Reserve Bank, and the SA Revenue Service (Sars).

The working group will study the country’s cryptocurrency industry and create a unified intergovernmental framework for it, Mboweni said.

“It is anticipated that, following broad industry comment and participation, the crypto assets regulatory working group will be ready to release a final research paper on the subject during the course of 2019,” Mboweni said.

Taxation of cryptocurrency will be high on the agenda. Mboweni said cryptocurrencies cannot be classified as a personal asset for capital gains tax purposes, but should be regarded as financial services for VAT purposes.