The Government of South Africa to Form A Cryptocurrency Regulatory Working Group

Jan 4, 2019 at 17:00 Update Date :Jan 4, 2019 at 17:00 UTC

A decisive and tangible approach regarding the digital currencies is taken by the Government of South Africa. The Minister of Finance in Government of South Africa has declared in a letter that there is a need to be more palpable towards the cryptocurrencies like Bitcoin Cash (BCH) and Ethereum (ETH).

As officially announced by the Government of South Africa, a new cryptocurrency regulatory working group is to be established to investigate and research the aspects of virtual currency and blockchain technology.

South African Government Monitoring Cryptocurrencies

Tito Mboweni, the Finance Minister of Africa, disclosed more information on the members to be taken in the regulatory group. The task force will include the Reserve Bank, Treasury, Financial Intelligence Centre, SA Revenue Service, and the Financial Sector Conduct Authority.

He further added that, with the broad industry participation, the task force (crypto assets regulatory group) will release a research paper in 2019.

The Finance Ministry – Government of South Africa earlier stated that the revenue bodies are not been able to keep track of the cryptocurrency transactions – because there are a lot of gaps in the already existing financial structure.

Tito Mboweni further quoted:

“However, work is underway within Sars to consider the amendment of the tax forms for the 2019 tax season in order to cater for the description of other assets (which will include cryptocurrencies) by means of a specific description field on the form.”

The finance minister continued saying that taxpayers are claiming that transaction in cryptocurrencies like Bitcoin Cash, Litecoin, Ethereum, and Zcash are not under the boundaries of ‘other trade income’ or ‘other trade loss’.

The concept of cryptocurrencies is not a new syllabus for the citizens of Africa. The country had witnessed the launch of Initial Coin Offering SAFCOIN – an initiate by the country to learn more about digital currencies.

Neil Ferreira, CEO, and co-founder at SAFCOIN, earlier stated that the cryptocurrency and blockchain technology is a bit confusing for many people in Africa. This hindrance is preventing the mass adoption of digital currencies. With SAFCOIN, the picture of cryptocurrencies will likely to be changed.

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