A tax consultation firm based in South Africa, the Tax Consulting SA, has responded to the announcement that was recently made by the central bank. They revealed that they will be regulating cryptocurrency within the next twelve to eighteen months. There are legal as well as tax implications for crypto organizations as well as investors. This applies to those who provide services that are intermediary.
The firm also said that the SARB or the South African Reserve Bank would not be interfering in investment decisions that are made by investors in the crypto space.
Intermediaries Need To Register As Providers Of Financial Services
The firm Tax Consulting SA has made revelations relating to what was said by the deputy governor of the central bank. The firm revealed that they intend to regulate their cryptocurrency within the next one to one and a half years. Crypto bodies within the country will find themselves regulated under the FAIS Act. This means that the organizations or even individuals, who provide advisory or intermediary services, will need to register as providers of financial services.
The firm goes on to predict that as the next step, the SARB could introduce KYC steps as well as regulations related to exchange control. They also pointed out that the SARB will not be interning in the investments made by investors in the crypto space. Instead, what the central bank will do issue health warnings. This way, protection cs be provided to investors who could otherwise risk losing it all.