The South African cryptocurrency market will reach a revenue of $373.5m by 2025.<\/p>\n\n\n\n\n\n\n\n
South Africa.- The South African Revenue Service<\/strong> (Sars) has called on crypto asset traders to register on its database in its latest bid to crack down on tax evasion.<\/p>\n\n\n\n Based on Sars’ research, about 6 million<\/strong> South Africans own crypto assets, with the region leading the world in Bitcoin adoption.<\/p>\n\n\n\n According to Statista<\/strong>, the South African cryptocurrency market will reach a revenue of $373.5m<\/strong> by 2025. The Financial Sector Conduct Authority (FSCA) took the initiative to classify crypto as a financial product in 2022 after discovering that South African crypto asset service providers facilitated R520 million (\u20ac21.5m) in transactions per month.<\/p>\n\n\n\n Sars wants a piece of the action and is now stepping up efforts to track down crypto traders to ensure compliance with tax regulations.<\/p>\n\n\n\n Sars commissioner Edward Kieswetter<\/strong> said: “We’ve invited taxpayers, exchanges and other intermediaries to register because now, if you don’t register, you’re breaking the law. Once they have registered, we now have knowledge of their existence, and we can now begin to track their business activities.”<\/p>\n\n\n\n Kieswetter also said that crypto assets can generate more tax income for the agency. This comes as Sars reported a surplus of nearly R9 billion<\/strong> (\u20ac435m, $479m) in its R1.855 trillion (\u20ac89.65bn) tax collections for the year through March 2025.<\/p>\n\n\n\n Sars has established a specialised crypto unit<\/strong> to identify non-compliant taxpayers, investigate undisclosed crypto transactions and offshore crypto holdings, and enforce compliance on digital assets and investments.<\/p>\n\n\n\n Those who fail to comply may face penalties, interest, and additional legal action.<\/p>\n\n\n