South Africa Launches a Working Group for Crypto Regulations
The South African government sets up a cryptocurrency working group.
The South African government has decided to set up a cryptocurrency working group to regulate Cryptocurrencies. This working group will play a key role in doing investigation and research on this new technology, Bitcoin and Altcoins. South African finance minister Tito Mboweni announced that the group will be tasked with researching the technology. Mr. Mboweni noted that the group will also look at tokens and blockchain technology in South Africa.
Bitcoin and Altcoins to be treated as financial service for VAT.
The minister said this regulation group will release a final research paper on the subject during 2019. The Financial Intelligence Centre, the Treasury, the Financial Sector Conduct Authority, The Reserve Bank and SA Revenue Service (SARS) will be representatives of the group. SARS is working on next year’s tax return forms to include virtual currencies. Mr Mboweni also explained that cryptocurrencies cannot be classed as personal use assets for capital gain tax purposes, but will treat Bitcoin and Altcoins as a financial service for VAT.
SAFCOIN to educate public on Blockchain Cryptocurrency
SAFCOIN launched an ICO - Initial Coin - Offering a few months ago in South Africa. During the launch of SAFCOIN, the CEO, and co-founder of SAFCOIN, Neil Ferreira, said: “Blockchain cryptocurrency is a confusing and unfamiliar concept to many Africans, who are preventing widespread adoption. With SAFCOIN, we hope to educate more people about the benefits of cryptocurrency and help them understand how and where to trade so that they can be part of the global digital currency revolution and Africa’s cryptocurrency history.“.
SAFCOIN officially launched on the 13 December 2018.