South Africa could boost its economy and tax income by updating crypto rules to match global standards, says Luno
South Africa could earn at least R540 million more in tax every year by updating a single crypto rule, says Luno, one of the world’s biggest crypto exchanges. Marius Reitz, Luno’s GM for Africa and Europe, said digital assets like Bitcoin have outperformed shares and bonds for a decade, but local investors are blocked by outdated laws.
> “Recently, Bitcoin hit over R2 million, growing 1,000% in five years,” said Reitz. “If local managers could offer Bitcoin ETFs, it would unlock huge returns and more tax.”
Luno’s estimate assumes just 1% of institutional funds invested in crypto could bring in R540 million in extra tax. Right now, SA does not clearly label crypto as offshore or onshore, which stops asset managers from creating crypto products. “If digital assets were called ‘onshore’ like other countries do, SA could gain big,” Reitz said.
Reitz pointed to BlackRock’s $70 billion Bitcoin ETF and the UK’s first pension fund investing in Bitcoin as proof of global momentum. He urged South Africa’s regulators to act fast, saying: “Digital assets can add vital tax income for a country that needs it. Clear rules would unlock growth and help fix South Africa’s budget.”
Discover more from DiutoCoinNews
Subscribe to get the latest posts sent to your email.
