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The South African government (SA) has set up a regulatory work group on cryptic assets dedicated to cryptography and blockchain. Local current affairs in English BusinessLive reported development on January 2nd.
Tito Mboweni – the finance minister of South Africa – said:
"It is expected that, following a broad commentary and industry participation, the regulatory cryptographic assets working group will be ready to publish a final research paper on the subject during 2019."
The finance minister also noted that the Inland Revenue Agency is working to include cryptocurrencies in tax forms for the coming year. The law on the amendment of the tax laws of 2018 included amendments which, explained Mboweni, would ensure that losses can only be offset by profits from the crypt.
Furthermore, he added, these amendments would clarify that cryptocurrencies can not be classified as assets for personal use for capital gains tax purposes and should instead consider crypto as a financial service for VAT purposes.
As reported by Cointelegraph in June, the Central Bank of South Africa has successfully tested an interbank payment system that uses the fiat token currency.
Cryptocurrency is also welcome by the local population, with 38% of South Africans wishing to have already invested in cryptocurrency, according to a July survey conducted by the Pan-African financial services company Old Mutual.
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