Is cryptocurrency legal in South Africa?

Cryptocurrency is legal in South Africa. It is classified as a financial product and falls under financial regulation. The South African Reserve Bank sets policy, while crypto service providers must comply with anti-money laundering and financial oversight rules. Cryptocurrencies are recognized as taxable assets but not as legal tender.

Crypto taxes in South Africa

Cryptocurrency is taxable in South Africa under the same rules that apply to other assets and income. On April 6, 2018, the South African Revenue Service (SARS) confirmed
that normal income tax principles apply to crypto assets. Taxpayers must declare any gains, losses, or income from crypto in the year they are received or accrued. Failure to disclose may result in penalties and interest.

The South African tax year ends on 28 February. Non-provisional taxpayers must file by the eFiling deadline, usually in late October. SARS requires disposals to be reported using the first-in, first-out (FIFO) method, unless you can prove specific identification.

Capital Gains Tax (CGT)

Crypto is treated as an intangible asset. A disposal, such as selling, trading, or exchanging one token for another, is a taxable event.

The tax rates are the following:

• The effective rate for individuals is up to about 18%.
• The effective rate for companies is about 21.6%.
• The effective rate for other trusts is about 36%.

Income tax

If crypto is earned rather than held, it is taxed as ordinary income. This applies to mining, staking, and payments in crypto. The value must be reported in rand at the time of receipt. Tax is then charged according to the standard personal income tax brackets, which range from 18% to 45%.

Value-Added Tax (VAT)

Crypto transactions are treated as financial services. These are exempt from VAT under the VAT Act. Buying, selling, or swapping crypto does not attract VAT. However, if goods or services are paid for in crypto, VAT applies to the goods or services themselves. The standard VAT rate in 2025 is 17%.

Tax treatment by transaction type is presented below:

For official guidance, see SARS crypto tax framework

Crypto regulations and compliance rules

South Africa has introduced a formal framework for the regulation of crypto businesses. The aim is to bring providers into the regulated financial system and protect consumers.

• Financial Sector Conduct Authority (FSCA). Crypto asset service providers (CASPs) are classified as financial product providers. They must obtain a license from the FSCA
  before offering services. The FSCA monitors them on an ongoing basis.
• AML/CTF. CASPs are accountable institutions under the Financial Intelligence Centre Act. They must conduct full Know-Your-Customer (KYC) checks, maintain records, and report suspicious transactions to the Financial Intelligence Centre.
• Licensing. A valid FSCA license is mandatory for any business that offers crypto asset services in South Africa. Licensing assessments cover governance, risk controls, and compliance with AML/CTF requirements.
• Advertising standards. In January 2023, the Advertising Regulatory Board (ARB) extended its Code to cover crypto assets,
  requiring risk warnings and accuracy in promotional materials. The rules require balanced and accurate communication. All adverts must include clear risk warnings and must not make misleading or exaggerated claims. The regulatory framework was introduced to ensure consumer protection and oversight of crypto asset services.

Key compliance requirements:

• FSCA licensing for all CASPs
• Full KYC checks for customers
• AML/CTF monitoring and reporting
• Fair advertising and consumer protection standards

Conclusion: is crypto legal in South Africa?

Although crypto is not recognized as legal tender, it is legal in South Africa. The FSCA oversees licensing and operational standards for service providers, while SARS applies tax rules to crypto assets. Businesses and investors must follow these requirements to operate or invest legally.

Cryptocurrency is a high-risk investment. The value of crypto assets may fluctuate significantly, and investors could lose all their capital. Past performance is not a reliable indicator of future results.