South Africa is ending crypto’s tax-free days as SARS prepares sweeping new rules to track every digital transaction.
South Africa’s Revenue Service (SARS) is set to implement the Crypto-Asset Reporting Framework (CARF), a global OECD standard that forces exchanges, brokers, and wallet providers to identify users and report transaction data annually. A draft of the rules is open for public comment until October 3, 2025.
Wiehann Olivier of Forvis Mazars says the scope covers cryptocurrencies, stablecoins, and some NFTs, adding: “CASPs will need to ensure their systems can support both regulatory and tax reporting obligations in parallel.” Failure to comply will trigger penalties under the Tax Administration Act, with smaller non-compliant firms at risk of collapse.
For taxpayers, the message is blunt: SARS will now have granular transaction-level data. Informal recordkeeping and selective disclosure are no longer safe. Olivier warns, “The days of informal recordkeeping and selective disclosure are over.”
Already, thousands of taxpayers have been contacted for under-reporting crypto gains. SARS offers a Voluntary Disclosure Programme to avoid penalties of up to 200% and possible criminal charges. Experts note nearly eight million South Africans own crypto, yet fewer than 500,000 declare income or gains. The myth of anonymity has been shattered as blockchain data is traceable.
As Jashwin Baijoo of Tax Consulting SA says: “Now is not the time to take risks. SARS’s approach clearly shows we are dealing with a competent revenue authority.” The buccaneering days are over: startups must pivot from secrecy to compliance, and winners will be platforms that adapt seamlessly.
Discover more from DiutoCoinNews
Subscribe to get the latest posts sent to your email.
