As the cryptocurrency craze gets hotter, people in South Africa are becoming more and more eager to get their hands on some bitcoin or other cryptocurrency. Experts agree that this is only the beginning of cryptocurrency’s rise, and that it is not too late to invest.

The large price tag for one bitcoin might make many South Africans think that bitcoin is out of their reach – one bitcoin is currently worth nearly a million rand. But bitcoin isn’t the only cryptocurrency around. And, if you choose the right cryptocurrency exchange, you can purchase many other coins as well.

Is it legal to buy cryptocurrency in South Africa?

Buying cryptocurrency in South Africa is % legal!

In some countries, buying cryptocurrency is banned or restricted in some way. China was the latest to declare all cryptocurrency transactions illegal, and some countries restrict its use to pay for goods, such as Russia and Vietnam.

But aside from these examples, most governments support and encourage the growth of cryptocurrency. El Salvador has gone so far as to recognise bitcoin as legal tender, with signs of other countries following suit.

Cryptocurrency is extremely popular and welcomed in South Africa.

The easiest way to buy bitcoin and other cryptocurrencies in South Africa

Unfortunately, cryptocurrency exchanges tend to make buying cryptocurrency slightly complicated for people who are new to crypto or new to investing. These exchange’s websites are usually designed in such a way as to scare off new investors, filling the screen with tons of buy/sell figures and dozens of abbreviations for various cryptocurrencies that just confuse people.

OVEX, South Africa’s largest over-the-counter cryptocurrency exchange, figured out a simple way to let anybody in South Africa buy cryptocurrency. Unlike other exchanges, OVEX offers something called a “request for quote” tool, or RFQ.

Using this RFQ, it is possible for people to simply type in the amount of South African rands (ZAR) they are willing to pay, and then get an immediate quote for how much bitcoin (BTC) or another cryptocurrency they will receive for that ZAR.

Whether investing R or R1-million, someone can use OVEX’s RFQ tool and instantly purchase bitcoin with zero fees and without any hassles or confusion whatsoever.

The tool also provides pairings for all other cryptocurrencies that OVEX deals with, allowing someone to quickly get a quote and buy or sell with just the click of a button.

Other cryptocurrency services from OVEX

OVEX has blasted the doors wide open for cryptocurrency trading in South Africa. The company offers everything from high-interest-earning cryptocurrency savings accounts to personalised, white-glove trades through its over-the-counter (OTC) desk, designed for high-net-worth individuals and institutional investors.

Click here to learn more about buying cryptocurrency easily in South Africa through OVEX.

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With celebrity endorsements and Youtubers pitching “How to capitalize on crypto currency,” many people are trying to learn how they can get a piece of the crypto action. 

Nowadays, you can find crypto currency on nearly every continent. But how big is crypto currency in Africa? This article will help you understand more about crypto currency from an African perspective.

Thanks to the internet, those in Africa–and Africans abroad–can get a slice of the crypto currency pie. This is made possible by the many crypto trading platforms that are verified and approved by financial bureaus. 

So, how exactly do you get started?

Crypto for beginners

What is cryptocurrency? Cryptocurrency is a digital platform to buy, sell, and trade digital currency that is not backed by a country's monetary denomination. 

For example, if you buy a share or portion of crypto currency in naira, you can buy and sell crypto currency in dollars.

Consider this currency as a form of buying digital tokens that you can use to buy real life items. A person would have to have real money to buy the cryptocurrency. As of now, there are only a few countries in Africa that have a global presence on international trading platforms, those countries are:

• Ghana
• Kenya
• Zimbabwe 
• Nigeria
• Botswana
• South Africa

These are the countries with considerable regulations and laws that allow their citizens to trade. 

In order to create a crypto currency account, you need to register with a trading platform. There are many crypto platforms that people in Africa can use, such as Coinbase and Paxful, which are two platforms that can help you enter the crypto world. 

Knowing the difference

After creating your bitcoin account (and you are approved to buy and trade), one of the questions you might have is, “How do I make money?”

Note that there is a difference between investing in crypto currency and buying crypto currency. 

The difference between the two is when investing in crypto currency, money is used to buy shares in a company that sells/trades crypto currency. While buying crypto currency is just that, you are buying digital currency to spend.

Putting money aside

African currencies fluctuate due to currency exchange. However, this should not be a deterrent for buying crypto currency. For instance, Nigeria or Zimbabwe’s recent inflation, during times of economic uncertainty, a person that set money aside through crypto trading would have untouched money that wouldn’t be impacted by the physical inflation rate of the country.

How is this possible? 

Those that are buying or trading crypto currency will buy at the global bank www.oldyorkcellars.com reason being is that inflation is created when there is an increase in a country's physical money supply, because platforms like Bitcoin are digital, there can never be an inflation since there will never be more than 21 million bitcoins produced for a very long time. 

Is crypto currency a wise decision for Africans?

One of the major issues with African economies have been corrupt government regulations. What can often happen in Africa is that money is typically circulated amongst the wealthy, thus preventing the creation of sociatal money flow. When this happens, those that are not as wealthy will be impacted by inflation. 

On the bright side, cryptocurrencies are a blockchain based system that can yield profits with just a small amount of money. This means your small investment will be on the same global market as highly competitive currencies. 

The future of crypto currency is still developing, but countries like South Africa have proven that digital currency can assist with the economic advancement because at any moment a person can sell their crypto currency once they have made a desired profit, and put that money towards the economy where they live. 

When beginning the crypto process remember to review the following: is it a trusted platform, don’t use all of your money to buy or trade, partner with a trusted person that understands crypto currency, and study the crypto market for yourself.

Have more questions about investing and personal finance? Check out MAJORITY's library of articles to learn more!

This beginner’s guide will point you in the right direction by showing you how to buy cryptocurrency in South Africa with low fees.

If you’re based in South Africa and want to buy digital currencies like Bitcoin, Shiba Inu, or Uniswap &#; you will need to open an account with a suitable broker. 

This beginner’s guide will point you in the right direction by showing you how to buy cryptocurrency in South Africa with low fees.   

How to Buy Cryptocurrency South Africa &#; Quick Steps

When figuring out how to buy cryptocurrency in South Africa &#; it makes sense for us to explain the process with an example. 

As such, in this example, we will explain how to buy one of the most undervalued digital currencies of &#; Lucky Block.      

• Step 1: Visit Lucky Block &#; Lucky Block hasn’t been listed on a centralized exchange yet. Instead, it’s still in its pre-sale launch phase &#; so you can buy Lucky Block tokens directly from the project’s website.    
• Step 2: Unlock Wallet &#; In order to buy Lucky Block via the pre-sale phase, you need to have BNB in your cryptocurrency wallet. You can choose your preferred wallet by clicking on the ‘Unlock Wallet’ button.          
• Step 3: Enter Number of Tokens &#; Now that your wallet is securely connected to Lucky Block, you can enter the number of BNB tokens that you wish to swap for LBlock.        
• Step 4: Buy Lucky Block &#; Before your Lucky Block tokens are sent to your wallet &#; you need to confirm the purchase.     

The above example highlights how to buy cryptocurrency in South Africa in a simple and burden-free manner. 

If, however, you require a more comprehensive walkthrough, you will find this by scrolling down.      

>>>Buy Cryptocurrency in South Africa Now<<<

Invest responsibly.

Step 1: Select a Cryptocurrency 

If you’re completely new to the world of cryptocurrency trading &#; you might be surprised to learn that there are now thousands of digital tokens that you can buy and sell online. 

As a beginner, this means that it can be challenging to pick the best crypto to buy for your investment portfolio.

If you need some inspiration &#; the five cryptocurrencies analyzed below are considered top-rated digital assets moving into    

1. Lucky Block

Lucky Block is a brand new blockchain project that is launching a decentralized lottery game that can be accessed on a global scale. The underlying technology is based on immutable smart contracts &#; which ensure that each and every lottery game is % random. 

In other words, no single person has the capacity to manipulate the outcome of Lucky Block games &#; and subsequently, players from all over the world can be certain that outcomes are transparent, fair, and free from manipulation. 

Another interesting aspect of Lucky Block is that its lotteries are not run by national bodies &#; like you find in the traditional version of this game. As such, jackpot prizes are expected to be of significant size. Lucky Block is still offering a discounted purchase price via its pre-sale launch.

As such, Lucky Block could be a great option when thinking about what cryptocurrency to buy now.

>>Buy Lucky Block<<

2. Bitcoin

If you’re just learning the ins and outs of how to buy cryptocurrency in South Africa &#; you’ve likely come across Bitcoin. After all, Bitcoin is the largest cryptocurrency in terms of pricing and market capitalization &#; as well as the most recognized. 

Bitcoin was first launched in &#; which also makes it the most established cryptocurrency in this market. In terms of gains, Bitcoin hasn’t grown by as much as other cryptocurrencies in this arena over the past 12 months &#; with a price increase of just 25%.  

>>>Buy Bitcoin now<<<

Your capital is at risk.

3. Ripple

Ripple is a multi-billion dollar crypto asset that was first launched in The main concept with Ripple is that it allows large financial institutions to perform cross-border transactions in a low-cost and super-fast manner. 

In fact, Ripple transactions cost just a tiny fraction of a cent and take less than five seconds to process. The underlying cryptocurrency token supporting the Ripple framework is XRP. Over the prior 12 months, XRP has increased in value by over %. 

>>>Buy Ripple Now<<<

Your capital is at risk.

4. Cosmos

Another cryptocurrency to consider adding to your portfolio in is Cosmos. This digital asset allows competing blockchains to communicate with one another &#; which is something that has never previously been possible. 

This process is known as interoperability and many expect this to play a major role in the future of blockchain technology. 

Cosmos is backed by its native token ATOM &#; which has performed very well in recent years. In fact, had you invested in Cosmos back in mid when the token was first launched on public exchanges &#; your money would now be worth % more. 

>>>Buy Cosmos Now<<<

Your capital is at risk.

5. Dogecoin

Dogecoin is an established cryptocurrency that was first launched in This digital currency became mainstream in early when Elon Musk was quoted as saying that in addition to Bitcoin and Ethereum &#; he also owns Dogecoin. 

This was followed by a number of Tweets and interviews whereby Musk continued to make his bullish sentiment on Dogecoin known. In turn, this saw the value of Dogecoin increase by over 14,% in the first few months of alone.

>>>Buy Dogecoin Now<<<

Your capital is at risk.

Step 2: Buy Cryptocurrency 

The specific process involved when learning how to buy cryptocurrencies can be daunting if you are completely new to this industry. 

The good news is that you can simplify the investment process by following the step-by-step walkthroughs outlined below.     

Buy Lucky Block 

In this mini-walkthrough, we will explain how to buy Lucky Block.   

1. Visit Lucky Block Pre-Sale Website

Lucky Block is yet to launch on a public exchange and as such &#; the project is offering its token on a pre-sale basis via its website. Therefore, head over to the Lucky Block pre-sale website to get the investment process started. 

2. Connect Wallet

You will need to connect your wallet to the Lucky Block portal so that you can access the project’s pre-sale launch.     

After clicking on the ‘Unlock Wallet’ button, you can choose the wallet that you wish to use.  

3. Enter Stake 

You will now see a box that requires you to enter your desired investment amount in BNB. If you want to keep your stakes modest, the minimum investment amounts to just BNB.   

4. Buy Lucky Block

The final step is to confirm your stated investment amount.   

In doing so, the Lucky Block tokens that you have just purchased should appear in your wallet in less than five minutes.   

www.oldyorkcellars.com Walkthrough

The next mini-walkthrough will show you how to trade cryptocurrency at www.oldyorkcellars.com 

1. Open www.oldyorkcellars.com Account

www.oldyorkcellars.com is a heavily regulated CFD broker &#; so the first step is to open an account by providing some personal information and contact details.  

For KYC purposes, upload a copy of your government-issued ID. This should be verified automatically by www.oldyorkcellars.com &#; so you’ll be ready to go in less than two minutes.    

2. Deposit Funds

You can use a debit/credit card or e-wallet to deposit funds into your newly created www.oldyorkcellars.com at a minimum of just $ 

Or, if you wish to transfer funds via a bank wire, the minimum is much higher at $ Either way, www.oldyorkcellars.com does not charge any deposit fees. 

3. Search for Crypto Market

You can now search for the crypto market that interests you.

In our example above, we are looking to trade Ethereum against the South African rand &#; so we search for ‘ETHZAR’.     

4. Trade Crypto 

You will now need to set up your crypto trade. If you think that your chosen crypto will increase in value, click on the ‘buy’ button.  

After entering your desired stake, confirm the order. 

Step 3: Best Crypto Exchange in South Africa

One of the most important considerations to make when learning how to buy crypto in South Africa is to choose a trusted cryptocurrency exchange. 

South African traders have access to a wide variety of exchanges &#; so it’s best to focus on platforms with low fees and plenty of supported markets.   

The best crypto exchanges in South Africa are reviewed below. 

1. www.oldyorkcellars.com &#; Overall Best Place to Trade Crypto in South Africa   

There are many benefits from choosing a CFD broker like www.oldyorkcellars.com over a traditional crypto exchange. Although you will not own the underlying digital currencies that you choose to trade &#; you will still gain exposure to your desired market. And, unlike most exchanges, www.oldyorkcellars.com is heavily regulated. Furthermore, you can trade crypto at this broker without paying a commission.

Another benefit of trading crypto CFDs at www.oldyorkcellars.com is that you can apply leverage to your position. This means that you can boost the size of your stake. Moreover, you can also choose from a buy or sell order when entering your trade &#; which allows you to target profits irrespective of whether the crypto markets are up or down.       

Another core benefit of using www.oldyorkcellars.com is that you will have access to almost crypto CFD markets. This even includes crypto pairs that contain the South Africa rand. In addition to crypto, you can also trade CFDs in the form of forex, ETFs, stocks, and commodities. www.oldyorkcellars.com supports plenty of payment methods &#; including debit/credit cards and e-wallets.   

>>> Trade Cryptocurrency in South Africa on www.oldyorkcellars.com Now <<<   

Your capital is at risk.

2. Binance &#; Best Bitcoin Exchange South Africa With Low Fees  

If you’re wondering how to buy cryptocurrency in South Africa via a conventional exchange &#; you might consider Binance. In terms of client accounts and trading volume &#; Binance is the largest exchange globally. You will also find more than 1, tradable markets here &#; which is great for diversification.

When it comes to fees, Binance charges a commission of % per slide. This means that you will pay this commission when you both enter and exit a position. Binance is also popular with South Africans that wish to earn interest on their crypto investments. This is because Binance offers a good selection of crypto savings accounts.    

>>>Buy Cryptocurrency in South Africa on Binance Now<<< 

Your capital is at risk.

How to Buy Bitcoins in South Africa 

There are many things to consider when learning how to buy Bitcoin in South Africa. At the forefront of this is the type of platform that you use to execute your trading orders. 

The key problem with traditional cryptocurrency exchanges is that they are not % safe. Time and time again we hear about exchanges being hacked &#; which means your money is at risk.  

And as such, we much prefer CFD brokers like www.oldyorkcellars.com &#; which allow you to trade digital currencies without taking ownership of any tokens. This removes the need to worry about wallet security or hacking attempts &#; as the tokens do not actually exist. 

Furthermore, when you trade crypto CFDs at www.oldyorkcellars.com &#; you can do so at 0% commission. You can also engage in short-selling and even apply leverage to your trades. 

Conclusion

This short guide on how to buy cryptocurrency in South Africa has explained the fundamental basics that you need to know before getting started. 

If you’re ready to start trading crypto assets right now &#; you can do so without paying any commission at www.oldyorkcellars.com This top-rated CFD broker &#; offers almost crypto markets in a heavily regulated environment.   

To make a high return on investment (ROI) in consider buying cryptocurrency at presale, before it has gained mass adoption and been listed on a large exchange &#; you’ll then be able to sell it at a high price point when those happen.

>>>Buy Cryptocurrency in South Africa at presale<<<

Your capital is at risk.

FAQs

Is it legal to buy Cryptocurrency in South Africa?

South Africans can legally purchase and sell cryptocurrencies.

What Bitcoin wallet can I use in South Africa?

You can use any wallet of your choice when storing Bitcoin tokens. Just make sure that the wallet offers top security features and that you will be able to send and receive funds with ease. 

How much do you need to invest in Bitcoin in South Africa?

This depends on your chosen broker For instance, if you decide to trade Bitcoin CFDs at www.oldyorkcellars.com &#; you only need to meet a minimum deposit of $20 to get started when using a debit/credit card or e-wallet. 

Is crypto regulated in South Africa?

Cryptocurrency-specific regulation is tipped to be introduced in However, nothing has been enacted into legislation as of writing. 

Where is the best place to buy Cryptocurrency?

If you’re looking to speculate on the future value of cryptocurrencies like Bitcoin, it might be worth considering a CFD broker like www.oldyorkcellars.com In doing so, you can trade almost crypto markets at 0% commission in a regulated environment. Many supported crypto pairs include the South African rand. 

Where to buy Bitcoins?

Once you have decided which cryptocurrency to buy today, you can then complete your purchase at one of the best cryptocurrency exchanges in South Africa. 

What is the cheapest crypto exchange?

Binance allows you to trade crypto at % per slide. www.oldyorkcellars.com, however &#; which is a CFD broker, allows you to trade crypto commission-free. 

What is the best app to buy cryptocurrency?

You can trade crypto CFDs via the www.oldyorkcellars.com mobile app &#; which is available on both Android and iOS phones.

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Investing in cryptocurrencies is a strategy most South Africans have explored. Estimates suggest that 15% of South Africans own cryptocurrency. This makes South Africa the country with the second highest cryptocurrency adoption rate in the world.

The crypto space has continued to grow and innovate at an incredible rate. Bitcoin alone only posted annualised losses for a mere two out of 12 years since its inception. The sheer volatility in this explosive space makes for an unmatched return potential. In fact, the JSE Top40 is up % for the year compared to Bitcoin’s %.

Keep in mind that investing in cryptocurrency is still risky – you could lose the entire value of your investments – so make sure you’re in a financially sound position and take the time to assess your risk appetite before putting money towards the asset class. This all starts with choosing a reputable exchange from which to purchase your cryptos.

Traditional finance applications that support crypto trading offer a very limited selection with minimal functionality. Buying cryptocurrencies through reputable crypto-first digital wallets and exchange providers offers users more choice and enhanced functionality.

OVEX is a leading South African cryptocurrency exchange that only ever lists assets that meet the exchange’s stringent eligibility requirements. Due diligence is done on a usability, legal, compliance and technical security basis.

Click here to begin investing in cryptocurrency with OVEX

What is cryptocurrency?

A cryptocurrency is a digital or virtual currency that is secured by cryptography, which makes it nearly impossible to counterfeit or double-spend. Unlike the US dollar or the euro, there is no central authority that manages and maintains the value of a cryptocurrency. Instead, the currency’s integrity is protected by hardcoded maths of an impenetrable nature.

This means it is almost impossible for it to be interfered with by governments or manipulated by third parties. It is this decentralised quality that proved foundational to cryptocurrencies’ cult-like following &#; especially in a time when the vast majority are losing faith in an otherwise broken system.

How to invest

If you want to diversify into cryptocurrency, OVEX is the best option for South Africans – both for institutional investors and those investing in their personal capacity.

OVEX makes investing in cryptocurrency simple thanks to its intuitive and user-friendly platform. It is also preferred by South African investors due to its low fees, tight spreads and fast settlements.

OVEX offers various valuable investment products, too, each of which provides unique value to its clients. These include:

• Buy and sell: This tool lets you request a quote for buying or selling cryptocurrency, which you can then accept. This is the easiest way to either trade or hold cryptocurrency and is perfect for both novice and seasoned cryptocurrency investors. OVEX offers 15 different trading pairs. This deep asset support is great for investors looking to build a diverse portfolio.
• Over-the-counter desk: This is a high-volume trading desk that offers 24/7 trading for institutions and high-net-worth individuals. It offers ultra-deep liquidity, low fees, full asset support and post-trade settlement.
• Interest accounts: These function similarly to traditional savings accounts. You put your money into the account and earn up to 20% interest per annum.
• Arbitrage: This service involves buying cryptocurrency on markets where it is cheaper and selling it on markets where it is more expensive. You earn the difference between these two prices.

Begin your cryptocurrency investment journey with OVEX today: Click here to begin investing in cryptocurrency with OVEX.

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Do any compliance requirements or exchange controls apply to crypto assets? 

The SARB does not currently oversee, supervise or regulate crypto assets, which were previously referred to as virtual currencies, but is continuing to monitor this evolving area. The SARB’s position on crypto assets remains as set out in the  Position Paper on Virtual Currenciesand is summarised below.

Crypto assets are not legal tender in South Africa, so any merchant or beneficiary may refuse them as a means of payment. These assets are not guaranteed or backed by SARB as they operate independently from the central bank and users are alerted to the potential risk of fluctuation in the value of crypto assets. There are currently no dedicated laws or regulations that specifically govern the use of crypto assets in South Africa and, therefore, no regulatory compliance requirements exist for local trading of these assets. Legal protection or recourse to users, traders or intermediaries of crypto assets therefore depends on general common law principles. Dealing in crypto assets is performed at the end-user’s sole and independent risk. Initial coin offerings are related to crypto assets and their use are also unregulated and unsupervised by the SARB.

Neither the Currency and Exchanges Manual for Authorised Dealers nor the Currency and Exchanges Manual for Authorised Dealers in foreign exchange with limited authority allow for cross-border or foreign exchange transfers for the explicit purpose of purchasing crypto assets. From an exchange control perspective, the Financial Surveillance Department is unable to approve any transactions of this nature.

Individuals may purchase crypto assets from abroad using their single discretionary allowance of up to R1 million and/or their individual foreign capital allowance of up to R10 million with a tax clearance certificate per calendar year, as outlined in the abovementioned manuals. A local Authorised Dealer will be able to assist individuals with these allowances.

It should be noted that, when purchasing foreign exchange through an Authorised Dealer, a customer is required to sign a declaration, either physically or electronically, which includes the wording “I have been informed of the limit applicable to the above transaction and confirm that this limit will not be exceeded as a result of the conclusion of this transaction”. It follows that an individual is responsible for ensuring that he/she does not exceed the relative allowance applicable to the transaction i.e. R1 million or R10 million.

An individual may not use another individual’s single discretionary allowance or foreign capital allowance through the granting of a 'loan' or any other similar agreement. This is regarded as a simulated transaction to circumvent the provisions of the Exchange Control Regulations and therefore an illegal activity. In this regard, refer to Exchange Control Regulation 10(1)(c), read with Exchange Control Regulation

The Exchange Control Regulations prohibit transactions where capital or the right to capital is, without permission from National Treasury, directly or indirectly exported from South Africa. This includes transactions where an individual purchases crypto assets in South Africa and uses them to externalise 'any right to capital'. Contravening these regulations is a criminal offence.

The repatriation of value to South Africa through crypto assets is not permitted as part of an individual’s single discretionary allowance and/or foreign capital allowance. This is because of the nature of the assets and because the transaction is currently not reportable on the FinSurv Reporting System. Similarly, non-residents who have introduced crypto assets to South Africa for local sale will not be able to transfer the sale proceeds abroad. The applicable exchange control policy is outlined in section G.(C)(i) of the Currency and Exchanges Manual for Authorised Dealers.

What is the Innovation Hub?

The Intergovernmental Fintech Working Group (IFWG), a committee of South African financial regulators, launched an Innovation Hub to promote responsible financial sector innovation and respond to changing market dynamics. Kindly visit www.oldyorkcellars.com for further information in this regard.

Innovation Hub users have access to three avenues for assistance:

The Regulatory Guidance Unit exists to help market innovators resolve specific questions regarding the policy landscape and regulatory requirements. Financial sector innovators with questions on fintech or innovation-related financial sector regulation are encouraged to visit the IFWG website and submit an enquiry to the Regulatory Guidance Unit at www.oldyorkcellars.com. Regulators will continue to assist queries through digital and virtual means, however, due to the pandemic, response times may depend on the volume and complexity of queries and will be provided on a best effort basis.

The Regulatory Sandbox provides financial sector innovators with an opportunity to test new products and services that push the boundaries of existing regulation, all under the responsible supervision of relevant regulators. Participants must apply to the Regulatory Sandbox, and the application can be downloaded at www.oldyorkcellars.com.

The Innovation Accelerator exists to provide a collaborative, exploratory environment for financial sector regulators to learn from and work with each other – and the broader financial sector ecosystem – on emerging innovations in the industry. Outcomes of these coordinated efforts will be shared on the IFWG Innovation Hub website, and the Innovation Hub’s latest reports can be accessed at www.oldyorkcellars.com. 

Some other considerations relating to cryptocurrency

Cryptocurrency is currently unregulated in South Africa and accordingly financial planners and wealth managers are not allowed to provide advice about this asset.  However, if you decide to go it alone (so to speak):

1. Understand what you are buying and be very careful of being lured by unreliable or unknown promises of exceptional returns.
   If it sounds too good to be true – it generally is too good to be true – be cautious.
   
   
2. Be aware of the investment risks.
   Cryptocurrencies are highly speculative digital commodities, and that they will continue to challenge investors with extreme price swings based on changing sentiment. Supply and demand for Bitcoin drive its price, along with the adoption and technological development of the currency.
   
   
3. Don’t pay for or act on cryptocurrency ‘tips’ without verifying their legitimacy.
   As the cryptocurrency space is largely unregulated, and financial planners and wealth managers are not under current legislation allowed to provide advice about this digital asset, investors depend largely on unverified social media information. This can also provide a fertile ground for fraudsters and their accomplices. It is easy to take advantage of people who do not understand how cryptocurrencies work. You can be lured into trading schemes, cloud-mining schemes, bitcoin copycats or even outright Ponzi schemes while mistakenly believing you are investing in a cryptocurrency. As a rule, you should verify the credibility of all information before you invest.

What is it?

A crypto asset is a digital representation of value that is not issued by a central bank, but is traded, transferred and stored electronically by natural and legal persons for the purpose of payment, investment and other forms of utility, and applies cryptography techniques in the underlying technology.

According to the Explanatory Memorandum on the Taxation Laws Amendment Bill as issued on 20 January the word “cryptocurrency” was replaced with “crypto asset” in line with the proposed adoption of a uniform definition of crypto assets within the South African regulatory framework.

How did we get here?

The process to understand and document crypto assets in South Africa started in

•   The initial public statement alerting the public to the risks of crypto assets was issued by National Treasury (NT) in a joint initiative with the South African Reserve Bank (SARB), the Financial Services Board (now the Financial Sector Conduct Authority (FSCA), the South African Revenue Service (SARS) and the Financial Intelligence Centre (FIC).
•   The Intergovernmental Fintech Working Group (IFWG) was established, comprising members from NT, SARB, FSCA and FIC. The objective of the IFWG is to foster fintech innovation by supporting an enabling regulatory environment and reviewing both the risks and the benefits of emerging innovations.
• • The National Credit Regulator (NCR) and SARS joined the IFWG.
  • The IFWG released a consultation paper on crypto assets. The consultation paper highlighted the perceived benefits and risks of crypto asset-related activities, as well as policy proposals for a regulatory framework. 
•   The IFWG released a position paper on crypto assets (updated ).  The purpose of the position paper is to provide specific recommendations for the development of a regulatory framework for crypto assets, including suggestions on the required regulatory changes to be implemented.
•   The position paper released in is being used as input into the proposed Regulations and a policy on crypto assets. Note that SARS is only one of many role-players in South Africa, and the South African Reserve Bank (SARB) is taking the lead in the formulation of these documents. Since the crypto industry is relatively new, SARB said it is in the process of developing its own set of rules that could allow its clients to transfer assets abroad. Until the regulation is fully established, it is illegal for crypto users to transfer funds abroad, according to SARB.

Do I need to pay tax on crypto assets?

Yes, normal income tax rules apply to crypto assets and affected taxpayers need to declare crypto assets’ gains or losses as part of their taxable income.

The onus is on taxpayers to declare all crypto assets-related taxable income in the tax year in which it is received or accrued.  Failure to do so could result in interest and penalties.

How will it work?

Following normal income tax rules, income received or accrued from crypto assets transactions can be taxed on revenue account under “gross income”.

Alternatively such gains may be regarded as capital in nature, as spelt out in the Eighth Schedule to the Act for taxation under the Capital Gains Tax (CGT) paradigm. Determination of whether an accrual or receipt is revenue or capital in nature is tested under existing jurisprudence (of which there is no shortage).

Taxpayers are also entitled to claim expenses associated with crypto assets accruals or receipts, provided such expenditure is incurred in the production of the taxpayer’s income and for purposes of trade.

Base cost adjustments can also be made if falling within the CGT paradigm. Gains or losses in relation to crypto assets can broadly be categorised with reference to three types of scenarios, each of which potentially gives rise to distinct tax consequences:

• Crypto assets can be acquired through so called “mining”. Mining is conducted by the verification of transactions in a computer-generated public ledger, achieved through the solving of complex computer algorithms.
• Investors can exchange local currency for a crypto asset (or vice versa) by using crypto assets exchanges, which are essentially markets for crypto assets, or through private transactions.
• Goods or services can be exchanged for crypto assets. This transaction is regarded as a barter transaction. Therefore the normal barter transaction rules apply.

See an example of the Income Tax Return (ITR12) form for the /21 tax year and below print screens where crypto assets are mentioned:

How is SARS tracing crypto asset transactions?

Legislatively, SARS is granted a wide range of collection powers in terms of the Income Tax Act, including a requirement for third-party service providers to submit financial data. Enforcement and audit processes are confidential and not shared with members of the public.

Do any compliance requirements or exchange controls apply to crypto assets? 

The SARB does not currently oversee, supervise or regulate crypto assets, which were previously referred to as virtual currencies, but is continuing to monitor this evolving area. The SARB’s position on crypto assets remains as set out in the  Position Paper on Virtual Currenciesand is summarised below.

Crypto assets are not legal tender in South Africa, so any merchant or beneficiary may refuse them as a means of payment. These assets are not guaranteed or backed by SARB as they operate independently from the central bank and users are alerted to the potential risk of fluctuation in the value of crypto assets. There are currently no dedicated laws or regulations that specifically govern the use of crypto assets in South Africa and, therefore, no regulatory compliance requirements exist for local trading of these assets. Legal protection or recourse to users, traders or intermediaries of crypto assets therefore depends on general common law principles. Dealing in crypto assets is performed at the end-user’s sole and independent risk. Initial coin offerings are related to crypto assets and their use are also unregulated and unsupervised by the SARB.

Neither the Currency and Exchanges Manual for Authorised Dealers nor the Currency and Exchanges Manual for Authorised Dealers in foreign exchange with limited authority allow for cross-border or foreign exchange transfers for the explicit purpose of purchasing crypto assets. From an exchange control perspective, the Financial Surveillance Department is unable to approve any transactions of this nature.

Individuals may purchase crypto assets from abroad using their single discretionary allowance of up to R1 million and/or their individual foreign capital allowance of up to R10 million with a tax clearance certificate per calendar year, as outlined in the abovementioned manuals. A local Authorised Dealer will be able to assist individuals with these allowances.

It should be noted that, when purchasing foreign exchange through an Authorised Dealer, a customer is required to sign a declaration, either physically or electronically, which includes the wording “I have been informed of the limit applicable to the above transaction and confirm that this limit will not be exceeded as a result of the conclusion of this transaction”. It follows that an individual is responsible for ensuring that he/she does not exceed the relative allowance applicable to the transaction i.e. R1 million or R10 million.

An individual may not use another individual’s single discretionary allowance or foreign capital allowance through the granting of a 'loan' or any other similar agreement. This is regarded as a simulated transaction to circumvent the provisions of the Exchange Control Regulations and therefore an illegal activity. In this regard, refer to Exchange Control Regulation 10(1)(c), read with Exchange Control Regulation

The Exchange Control Regulations prohibit transactions where capital or the right to capital is, without permission from National Treasury, directly or indirectly exported from South Africa. This includes transactions where an individual purchases crypto assets in South Africa and uses them to externalise 'any right to capital'. Contravening these regulations is a criminal offence.

The repatriation of value to South Africa through crypto assets is not permitted as part of an individual’s single discretionary allowance and/or foreign capital allowance. This is because of the nature of the assets and because the transaction is currently not reportable on the FinSurv Reporting System. Similarly, non-residents who have introduced crypto assets to South Africa for local sale will not be able to transfer the sale proceeds abroad. The applicable exchange control policy is outlined in section G.(C)(i) of the Currency and Exchanges Manual for Authorised Dealers.

What is the Innovation Hub?

The Intergovernmental Fintech Working Group (IFWG), a committee of South African financial regulators, launched an Innovation Hub to promote responsible financial sector innovation and respond to changing market dynamics. Kindly visit www.oldyorkcellars.com for further information in this regard.

Innovation Hub users have access to three avenues for assistance:

The Regulatory Guidance Unit exists to help market innovators resolve specific questions regarding the policy landscape and regulatory requirements. Financial sector innovators with questions on fintech or innovation-related financial sector regulation are encouraged to visit the IFWG website and submit an enquiry to the Regulatory Guidance Unit at www.oldyorkcellars.com. Regulators will continue to assist queries through digital and virtual means, however, due to the pandemic, response times may depend on the volume and complexity of queries and will be provided on a best effort basis.

The Regulatory Sandbox provides financial sector innovators with an opportunity to test new products and services that push the boundaries of existing regulation, all under the responsible supervision of relevant regulators. Participants must apply to how to invest in cryptocurrency in south africa Regulatory Sandbox, and the application can be downloaded at www.oldyorkcellars.com.

The Innovation Accelerator exists to provide a collaborative, exploratory environment for financial sector regulators to learn from and work with each other – and the broader financial sector ecosystem – on emerging innovations in the industry, how to invest in cryptocurrency in south africa. Outcomes of these coordinated efforts will be shared on the IFWG Innovation Hub website, and the Innovation Hub’s latest reports can be accessed at www.oldyorkcellars.com. 

You can buy and sell Bitcoin in South Africa through a reputable Bitcoin exchange. Access the exchanges via your personal computer or Smartphone using the relevant mobile app.

Once you have signed up for an account and it is verified, you need to obtain a Bitcoin wallet which you use for your Bitcoin transactions.

A Quick Overview of How To Buy Bitcoin:

✔️Is it legal to buy and sell bitcoin in SA?
✔️6 Ways to buy Bitcoin in SA
✔️Bitcoin exchanges in SA
Step-by-step guide to buying Bitcoin in SA?
How to get a Bitcoin promo code
How to get a Bitcoin Wallet Address
Bitcoin in SA
Is Bitcoin legal in SA?
Regulations Governing Bitcoin in SA

It’s possible to transfer funds from any of the major financial institutions in South Africa to a Bitcoin exchange and you can start trading as soon as the funds are cleared. You have the choice of keeping your bitcoins in the exchange or transferring them to your personal Bitcoin wallet.

👉Best Upcoming Solana Project to invest in: 

Is it legal to buy and sell Bitcoin in South Africa?

Yes, it is legal to buy and sell Bitcoin in South Africa. The South African Reserve Bank (SARB) has issued warnings regarding the risks associated with trading in Bitcoin but there is no actual ban on any form of cryptocurrency trading. SARS makes it clear that any earnings from these trades are subject to taxation.

Cryptocurrency trading in South Africa is currently unregulated but the government is working on a new regulatory framework to control the cyber-banking industry.

6 Ways to buy Bitcoin in South Africa

Buy Bitcoin using a Bitcoin exchange

Do your research and select a Bitcoin exchange that is regarded as reliable, secure, and trustworthy. Bitcoin exchanges such as Luno allow you to deposit fiat funds from a bank account into a Bitcoin wallet to transact in the digital currency. Bitcoin exchanges are regarded as the safest and most secure way to buy and sell Bitcoin and other cryptocurrencies such as Ethereum.

Buy Bitcoin with a credit or debit card

It’s possible now to buy Bitcoin using a credit or debit card. You still need to go through a reputable Bitcoin exchange such as Luno where you add your card details in the system and transfer money electronically once the card details have been verified. Credit card fees apply which makes it a slightly more expensive way to buy Bitcoin.

Use a BTM/VTM (Bitcoin ATM)

There are not many BTMs in South Africa currently but they are available in some of the major cities. This is a vending machine that works in much the same way as an ATM. You need to have a Bitcoin wallet loaded on your Smartphone which generates a QR code that the BTM reads. You can use a BTM to deposit funds to purchase Bitcoin but you can’t use a BTM to withdraw the money earned from selling Bitcoin.

Get paid in Bitcoin

Bitcoin is growing in popularity as a payment method for goods sold and services rendered. Money owed is paid into a Bitcoin wallet which you obtain through a reputable exchange such as Luno. The most popular payment gateway provider for Bitcoin transactions is PayFast. This facility allows people to pay how to invest in cryptocurrency in south africa Bitcoin which is then converted to Rands.

Join a Bitcoin trading community site

There are a few reputable cryptocurrency platforms that provide you with the opportunity to connect with how to invest in cryptocurrency in south africa who are buying and selling Bitcoin privately. You can trade through a reputable website or meet in person and pay cash for the purchase. Be careful of falling victim to a Bitcoin scam.

Mine Bitcoin

Many South Africans have got into the complex process of mining Bitcoin. This is largely done through Bitcoin syndicates as massive investment in the processing technology is required for Bitcoin mining. Bitcoin mining involves securing the network and verifying transactions and successful miners are paid in Bitcoin. It’s not hugely profitable but if you’re technologically inclined, you’ll find the process fascinating.

You might also like: What is forex trading?

Bitcoin exchanges in South Africa

The two oldest exchanges in South Africa that have stood the test of time and can be trusted with Bitcoin transactions are Luno and ice3X (IceCube). Both exchanges accept deposits from your bank account or card payments. Once the funds are cleared, you can immediately buy or sell Bitcoin through the exchange.

Bitcoin is slowly being accepted by vendors as a method of payment but it’s a long way off from being used for daily transactions. Any customer who is registered with PayFast (www.oldyorkcellars.com) can accept Bitcoin through the PayFast gateway for a fee and South African Rands are deposited into a bank account.

There are less than 10 Bitcoin ATMs in South Africa but the number is growing. These cash machines have been dubbed BTMS (Bitcoin Teller Machine) or VTMS (Virtual Teller Machine). At this stage, you can use a BTM to deposit funds in your digital account but you can use it to withdraw funds. BTM fees are high, at around 10% per transaction.

Luno regularly updates its list of merchants in South Africa that accept Bitcoin as a method of payment. You can see from the diverse spread of merchants that Bitcoin is becoming more widely accepted in South Africa for regular transactions.

www.oldyorkcellars.com was an early adopter of Bitcoin and allows its customers to use digital currency to buy products on the massive online shopping site. This is done through PayFast which is the instant EFT payment method that Takealot uses. Other large online shopping sites have followed in its lead.

A step-by-Step guide to buying Bitcoin in South Africa

Luno is one of the most popular and trustworthy Bitcoin exchanges in South Africa so let’s look at their process as an example of how to set up an account and start trading in Bitcoin.

Luno is a digital platform where you can buy, sell, store and trade Bitcoin and Ethereum. Through Luno, you can buy Bitcoin using fiat money electronically transferred from your bank account and you can sell your Bitcoin and transfer the money directly to your bank account.

Step 1: Sign up for an account with Luno

Sign up for a free Luno Wallet via the web, iOS, or Android and follow easy instructions to register, how to invest in cryptocurrency in south africa, set up your profile and redeem the promo code.

You sign up by using your personal/business email address and password. Input the latter and then go to your email inbox to pick up a confirmation email sent to you by Luno.

Select ‘Confirm email address. You are then taken back to the Luno website.

Select ‘Continue’. You are now registered for a Luno account.

Step 2: Verify your account

Select ‘Settings’ in the menu bar

Select ‘Upgrade’ to link to the Personal details page

Complete the steps by adding your details. This involves submitting digital copies of your ID, proof of residence and bank statement.

When your personal details have been verified by Luno, your account will be upgraded from Level 0 to Level 1, 2 or 3 depending on the deposit and withdrawal level you specify.

• Level 0: your account and personal how to invest in cryptocurrency in south africa have not yet been verified
• Level 1: your account is verified and limited to a total of R15 for deposits and withdrawals
• Level 2: your account is verified and limited to R50 for deposits and withdrawals
• Level 3: your account is verified and how to invest in cryptocurrency in south africa limit is set for deposits and withdrawals

Step 3: Deposit money into your account

When your account has been verified, you are able to immediately deposit money into the account and buy Bitcoin. When your deposit has cleared in your Luno account, it will show up in the digital wallet.

Select ‘Wallets’ to make how to invest in cryptocurrency in south africa deposit.

Select ‘Deposits’ at the bottom of the wallet link.

Select your preferred bank from the list of main banks in South Africa listed on the site.

Select ‘Next’ to instruct Luno on how much money you will deposit into your account.

A reference number will appear on the screen, how to invest in cryptocurrency in south africa. You need this reference number as well as the Luno banking details to proceed with making a deposit. Use the Luno banking account and reference number (beneficiary reference) to do an electronic transfer from your regular bank account to your Luno bank account.

The funds you transfer will appear in your Bitcoin wallet once they have been cleared. This usually takes 2 working days. Once the funds appear in you Bitcoin wallet, you can buy Bitcoin.

Step 4: Buy Bitcoin with ‘Instant Buy’

The ‘Instant Buy’ feature on Luno is the fastest and easiest way to buy Bitcoin in South Africa. However, there is a fee for this facility so it does cost you more. A cheaper option is to place a ‘Buy order’ through Luno.

Select the ‘Buy/Sell’ button on the Luno screen. You are able to switch between Bitcoin (BTC) and Rand to transact. Use BTC to indicate the amount you want to buy, and ZAR to indicate the amount you want to spend.

Select ‘Buy’ to complete the order.

Step 5: Place a ‘Buy Order’ on the exchange to buy Bitcoin

Select ‘Exchange’ to go through to the ‘Buy Order’ feature.

Select ‘Place Order’ to activate a ‘Buy Order’ request where your order to buy will be matched by a person’s order to sell.

Any outstanding amount that is not matched in a ‘buy/sell order will remain in your account and is available to be matched with other ‘buy/sell orders’ until the whole amount has been spent.

Select ‘Place Buy Order’ when you are ready to buy the Bitcoin. When you have confirmed the transaction, your Bitcoin and ZAR balance will be updated. The BTC indicates how much Bitcoin you have purchased and ZAR indicates how much you spent.

How to get a Bitcoin Promo Code

Sign into your Luno account and select ‘Rewards’. &#; click here

A personal invitation code will appear as well as an instruction to ‘Invite Friends’.

Select ‘Invite Friends’ and the social media platform you’d like to share the invitation on (either Facebook or Twitter).

You can also copy the unique ‘Invite Friends’ link and share it via email, on your personal website or WhatsApp.

If the friend(s) you sent the link how to invest in cryptocurrency in south africa registers an account with Luno, you are rewarded in Bitcoins.

How to get a Bitcoin wallet address 

You can generate as many Bitcoin wallet addresses on Luno as you want. Follow these simple steps to obtain a Bitcoin wallet which you need to buy, sell, store and transact the digital currency.

Step 1:

Log into your Luno account

Step 2:

Click on ‘Receive’ if you are accessing Luno from the website

Click on ‘More’ if you are using the Luno mobile app before you can click on ‘Receive’

Step 3:

Select the digital currency you want (Bitcoin or Ethereum)

Step 4

Click on ‘Add address’ if you are accessing Luno from the website

Click on the ‘+’ sign if you are using the Luno mobile app

You how to invest in cryptocurrency in south africa be instructed to label the address you require. Input a relevant name.

Step 5

Click on ‘Create’ and a BTC address will be generated for you by Luno.

A BTC address is a string of letters and numbers that identifies your Bitcoin wallet. It begins with either a 1 or a 3 and is case-sensitive. This is the address you provide people who transact using Bitcoin.

Bitcoin in South Africa 

South Africa has adopted Bitcoin as an alternative currency on an impressive scale. It’s believed to be largely due to the political and economic uncertainty in the country, where South Africans are looking for an alternative investment option to protect themselves. In particular, one that is not heavily regulated and can be transacted instantaneously.

In fact, Africa as a whole has taken a big interest in Bitcoin as well as other popular cryptocurrencies such as Ethereum and Litecoin. Nigeria and South Africa are ranked as first and second-most heaviest consumers of Bitcoin respectively. A study conducted by Luno revealed that South Africa leads many European countries in crypto adoption.

According to Luno’s study, close to 70% of the South African respondents surveyed were aware of the digital currency trend and almost 30% had bought Bitcoin. This dwarfed awareness and purchase levels in other countries surveyed, such as Germany (49% and 9% respectively) and France (37% and 19% respectively).

Is Bitcoin legal in South Africa?

Buying and selling cryptocurrency in South Africa is legal but it is currently not regulated.

The South African Reserve Bank (SARB) has issued a formal statement that it “does not oversee, supervise or regulate the virtual currency landscape, systems and intermediaries for effectiveness, soundness, integrity or robustness” and has issued a warning highlighting the risks associated with investing in virtual currencies such as Bitcoin and Ethereum.

SARB notes that Bitcoin falls outside of the definition of legal tender and any payments made via Bitcoin in South Africa “may not discharge a debtor of a monetary obligation and purchasers run the risk that their Bitcoin payments are not recognized by South African law”. In short, SARB deems transactions performed to be “at the end-user’s sole and independent risk and have no recourse to SARB”.

SARB further notes that Bitcoin and all other virtual currencies are “not defined as securities in terms of the Financial Markets Act, (Act no. 19 of ) and are not subject to regulatory standards that apply to the trading of securities”.

SARB also issues a warning that any profits made through Bitcoin transactions are subject to taxation.

Regulations governing Bitcoin in South Africa 

As of endhow to invest in cryptocurrency in south africa, strict regulatory how to invest in cryptocurrency in south africa governing cryptocurrency trading in South Africa were largely non-existent. This stands apart from tax regulations and AML/KYC compliance (AML meaning Anti-Money Laundering and KYC meaning Know How to invest in cryptocurrency in south africa Customer).

A consultation paper has been drafted by SARB that promises to enforce hefty regulations surrounding Bitcoin exchanges and BTM/VTMs but the country appears to still be a long way from how to invest in cryptocurrency in south africa down the specifics. It’s argued that a new regulatory framework will need to be developed as virtual currencies do not fit in with the current regulatory framework.

Frequently Asked Questions

Can I buy less than 1 Bitcoin in South Africa?

Yes, a common misconception among South Africans is that you cannot buy less than 1BTC. You can buy as little as as $30 / R ZAR Bitcoin and you will still be regarded as a Bitcoin owner.

Should I buy Bitcoin?

Bitcoin is a risky and volatile asset;  however many investors in South Africa take the risk of buying Bitcoin because of the potential high returns based on Bitcoin's historical outperformance to the S&P.

What are the Bitcoin wallets mostly used by South Africans?

A large percentage of South Africans (about 75%) prefer to maintain their coins on the exchange where they originally bought it. Top Bitcoin wallets favored by South Africans are: Exocus, Trezor One and Exocus.

Where can I find a Bitcoin ATM in South Africa?

Bitcoin ATMS in South Africa can be located in Pretoria, Johannesburg, Cape Town and Nelspruit

How much money should I invest in Bitcoin?

Many Bitcoin investors in South Africa consider around 5% &#; 30% of their investment capital to be safe, while there are others that are comfortable with an investment of between 15% &#; 30%

Is Bitcoin a good investment for beginners?

If you are looking for short-term profit, the high liquidity that is associated with Bitcoin makes it a good investment, but bear in mind that Bitcoin is also a very high-risk investment because of how to invest in cryptocurrency in south africa volatile assets.

What is it?

A crypto asset is a digital representation of value that is not issued by a central bank, but is traded, transferred and stored electronically by natural and legal persons for the purpose of payment, investment and other forms of utility, and applies cryptography techniques in the underlying technology.

According to the Explanatory Memorandum on the Taxation Laws Amendment Bill as issued on 20 January the word “cryptocurrency” was replaced with “crypto asset” in line with the proposed adoption of a uniform definition of crypto assets within the South African regulatory framework.

How did we get here?

The process to understand and document crypto assets in South Africa started in

•   The initial public statement alerting the public to the risks of crypto assets was issued by National Treasury (NT) in a joint initiative with the South African Reserve Bank (SARB), the Financial Services Board (now the Financial Sector Conduct Authority (FSCA), the South African Revenue Service (SARS) and the Financial Intelligence Centre (FIC).
•   The Intergovernmental Fintech Working Group (IFWG) was established, comprising members from NT, SARB, FSCA and FIC. The objective of the IFWG is to foster fintech innovation by supporting an enabling regulatory environment and reviewing both the risks and the benefits of emerging innovations.
• • The National Credit Regulator (NCR) and SARS joined the IFWG.
  • The IFWG released a consultation paper on crypto assets. The consultation paper highlighted the perceived benefits and risks of crypto asset-related activities, as well as policy proposals for a regulatory framework. 
•   The IFWG released a position paper on crypto assets (updated ).  The purpose of the position paper is to provide specific recommendations for the development of a regulatory framework for crypto assets, including suggestions on the required regulatory changes to be implemented.
•   The position paper released in is being used as input into the proposed Regulations and a policy on crypto assets. Note that SARS is only one of many role-players in South Africa, and the South African Reserve Bank (SARB) is taking the lead in the formulation of these documents. Since the crypto industry is relatively new, how to invest in cryptocurrency in south africa, SARB said it is in the process of developing its own set of rules that could allow its clients to transfer assets abroad. Until the regulation is fully established, it is illegal for crypto users to transfer funds abroad, according to SARB.

Do I need to pay tax on crypto assets?

Yes, normal income tax rules apply to crypto assets and affected taxpayers need to declare crypto assets’ gains or losses as part of their taxable income.

The onus is on taxpayers to declare all crypto assets-related taxable income in the tax year in which it is received or accrued.  Failure to do so could result in interest and penalties.

How will it work?

Following normal income tax rules, income received or accrued from crypto assets transactions can be taxed on revenue account under “gross income”.

Alternatively such gains may be regarded as capital in nature, as spelt out in the Eighth Schedule to the Act for taxation under the Capital Gains Tax (CGT) paradigm. Determination of whether an accrual or receipt is revenue or capital in nature is tested under existing jurisprudence (of which there is no shortage).

Taxpayers are also entitled to claim expenses associated with crypto assets accruals or receipts, provided such expenditure is incurred in the production of the taxpayer’s income how to invest in cryptocurrency in south africa for purposes of trade.

Base cost adjustments can also be made if falling within the CGT paradigm. Gains or losses in relation to crypto assets can broadly be categorised with reference to three types of scenarios, each of which potentially gives rise to distinct tax consequences:

• Crypto assets can be acquired through so called “mining”. Mining is conducted by the verification of transactions in a computer-generated public ledger, achieved through the solving of complex computer algorithms.
• Investors can exchange local currency for a crypto asset (or vice versa) by using crypto assets exchanges, which are essentially markets for crypto assets, or through private transactions.
• Goods or services can be exchanged for crypto assets. This transaction is regarded as a barter transaction. Therefore the normal barter transaction rules apply.

See an example of the Income Tax Return (ITR12) form for the /21 tax year and below print screens where crypto assets are mentioned:

How is SARS tracing crypto asset transactions?

Legislatively, SARS is granted a wide range of collection powers in terms of the Income Tax Act, including a requirement for third-party service providers to submit financial data. Enforcement and audit processes are confidential and not shared with members of the public.

Investing in cryptocurrencies is a strategy most South Africans have explored. Estimates suggest that 15% of South Africans own cryptocurrency. This makes South Africa the country with the second highest cryptocurrency adoption rate in the world.

The crypto space has continued to grow and innovate at an incredible rate. Bitcoin alone only posted annualised losses for a mere two out of 12 years since its inception. The sheer volatility in this explosive space makes for an unmatched return potential. In fact, the JSE Top40 is up % for the year compared to Bitcoin’s %.

Keep in mind that investing in cryptocurrency is still risky – you could lose the entire value of your investments – so make sure you’re in a financially sound position and take the time to assess your risk appetite before putting money towards the asset class. This all starts with choosing a reputable exchange from which to purchase your cryptos.

Traditional finance applications that support crypto trading offer a very limited selection with minimal functionality. Buying cryptocurrencies through reputable crypto-first digital wallets and exchange providers offers users more choice and enhanced functionality.

OVEX is a leading South African cryptocurrency exchange that only ever lists assets that meet the exchange’s stringent eligibility requirements. Due diligence is done on a usability, legal, compliance and technical security basis.

Click here to begin investing in cryptocurrency with OVEX

What is cryptocurrency?

A cryptocurrency is a digital or virtual currency that is secured by cryptography, which makes it nearly impossible to counterfeit or double-spend. Unlike the US dollar or the euro, there is no central authority that manages and maintains the value of a cryptocurrency. Instead, how to invest in cryptocurrency in south africa, the currency’s integrity is protected by hardcoded maths of an impenetrable nature.

This means it is almost impossible for it to be interfered with by governments or manipulated by third parties. It is this decentralised quality that proved foundational to cryptocurrencies’ cult-like following &#; especially in a time when the vast majority are losing faith in an otherwise broken system.

How to invest

If you want to diversify into cryptocurrency, OVEX is the best option for South Africans – both for institutional investors and those investing in their personal capacity.

OVEX makes investing in cryptocurrency simple thanks to its intuitive and user-friendly platform. It is also preferred by South African investors due to its low fees, tight spreads and fast settlements.

OVEX offers various valuable investment products, too, each of which provides unique value to its clients. These include:

• Buy and sell: This tool lets you request a quote for buying or selling cryptocurrency, which you can then accept. This is the easiest way to either trade or hold cryptocurrency and is perfect for both novice and seasoned cryptocurrency investors. OVEX offers 15 different trading pairs. This deep asset support is great for investors looking to build a diverse portfolio.
• Over-the-counter desk: This is a high-volume trading desk that offers 24/7 trading for institutions and high-net-worth individuals. It offers ultra-deep liquidity, how to invest in cryptocurrency in south africa, low fees, full asset support and post-trade settlement.
• Interest accounts: These function similarly to traditional savings accounts. You put your money into the account and earn up to 20% interest per annum.
• Arbitrage: This service involves buying cryptocurrency on markets where it is cheaper and selling it on markets where it is more expensive. You earn the difference between these two prices.

Begin your cryptocurrency investment journey with OVEX today: Click here to begin investing in cryptocurrency with OVEX.

• This promoted content was paid for by the party concerned

As the cryptocurrency craze gets hotter, people in South Africa are becoming more and more eager to get their hands on some bitcoin or other cryptocurrency. Experts agree that this is only the beginning of cryptocurrency’s rise, and that it is not too late to invest.

The large price tag for one bitcoin might make many South Africans think that bitcoin is out of their reach – one bitcoin is currently worth nearly a million rand. But bitcoin isn’t the only cryptocurrency around. And, if you choose the right cryptocurrency exchange, you can purchase many other coins as well.

Is it legal to buy cryptocurrency in South Africa?

Buying cryptocurrency in South Africa is % legal!

In some countries, buying cryptocurrency is banned or restricted in some way. China was the latest to declare all cryptocurrency transactions illegal, and some countries restrict its use to pay for goods, such as Russia and Vietnam.

But aside from these examples, most governments support and encourage the growth of cryptocurrency. El Salvador has gone so far as to recognise bitcoin as legal tender, with signs of other countries following suit.

Cryptocurrency is extremely popular and welcomed in South Africa.

The easiest way to buy bitcoin and other cryptocurrencies in South Africa

Unfortunately, cryptocurrency exchanges tend to make buying cryptocurrency slightly complicated for people who are new to crypto or new to investing. These exchange’s websites are usually designed in such a way as to scare off new investors, filling the screen with tons of buy/sell figures and dozens of abbreviations for various cryptocurrencies that just confuse people.

OVEX, South Africa’s largest over-the-counter cryptocurrency exchange, figured out a simple way to let anybody in South Africa buy cryptocurrency. Unlike other exchanges, OVEX offers something called a “request for quote” tool, or RFQ.

Using this RFQ, it is possible for people to simply type in the amount of South African rands (ZAR) they are willing to pay, and then get an immediate quote for how much bitcoin (BTC) or another cryptocurrency they will receive for that ZAR.

Whether investing R or R1-million, someone can use OVEX’s RFQ tool and instantly purchase bitcoin with zero fees and without any hassles or confusion whatsoever.

The tool also provides pairings for all other cryptocurrencies that OVEX deals with, allowing someone to quickly get a quote and buy or sell with just the click of a button.

Other cryptocurrency services from OVEX

OVEX has blasted the doors wide open for cryptocurrency trading in South Africa. The company offers everything from high-interest-earning cryptocurrency savings accounts to personalised, white-glove trades through its over-the-counter (OTC) desk, designed for high-net-worth individuals and institutional investors.

Click here to learn more about buying cryptocurrency easily in South Africa through OVEX.

• This promoted content was paid for by the party concerned

This beginner’s guide will point you in the right direction by showing you how to buy cryptocurrency in South Africa with low fees.

If you’re based in South Africa and want to buy digital currencies like Bitcoin, Shiba Inu, or Uniswap &#; you will need to open an account with a suitable broker. 

This beginner’s guide will point you in the right direction by showing you how to buy cryptocurrency in South Africa with low fees.   

How to Buy Cryptocurrency South Africa &#; Quick Steps

When figuring out how to invest in cryptocurrency in south africa to buy cryptocurrency in South Africa &#; it makes sense for us to explain the process with an example. 

As such, in this example, we will explain how to buy one of the most undervalued digital currencies of &#; Lucky Block.      

• Step 1: Visit Lucky Block &#; Lucky Block hasn’t been listed on a centralized exchange yet. Instead, it’s still in its pre-sale launch phase &#; so you can buy Lucky Block tokens directly from the project’s website.    
• Step 2: Unlock Wallet &#; In order to buy Lucky Block via the pre-sale phase, how to invest in cryptocurrency in south africa, you need to have BNB in your cryptocurrency wallet. You can choose your preferred wallet by clicking on the ‘Unlock Wallet’ button.          
• Step 3: Enter Number of Tokens &#; Now that your wallet is securely connected to Lucky Block, you can enter the number of BNB tokens that you wish to swap for LBlock.        
• Step 4: Buy Lucky Block &#; Before your Lucky Block tokens are sent to your wallet &#; you need to confirm the purchase.     

The above example highlights how to buy cryptocurrency in South Africa in a simple and burden-free manner. 

If, however, you require a more comprehensive walkthrough, you will find this by scrolling how to invest in cryptocurrency in south africa Cryptocurrency in South Africa Now<<<

Invest responsibly.

Step 1: Select a Cryptocurrency 

If you’re completely new to the world of cryptocurrency trading &#; you might be surprised to learn that there are now thousands of digital tokens that how to invest in cryptocurrency in south africa can buy and sell online. 

As a beginner, this means that it can be challenging to pick the best crypto to buy for your investment portfolio.

If you need some inspiration &#; the five cryptocurrencies analyzed below are considered top-rated digital assets moving into    

1. Lucky Block

Lucky Block is a brand new blockchain project that is launching a decentralized lottery game that can be accessed on a global scale. The underlying technology is based on immutable smart contracts &#; which ensure that each and every lottery game is % random. 

In other words, no single person has the capacity to manipulate the outcome of Lucky Block games &#; and subsequently, players from all over the world can be certain that outcomes are transparent, fair, and free from manipulation. 

Another interesting aspect of Lucky Block is that its lotteries are not run by national bodies &#; like you find in the traditional version of this game. As such, jackpot prizes are expected to be of significant size. Lucky Block is still offering a discounted purchase price via its pre-sale launch.

As such, Lucky Block could be a great option when thinking about what cryptocurrency to buy now.

>>Buy Lucky Block<<

2. Bitcoin

If you’re just learning the ins and outs of how to buy cryptocurrency in South Africa &#; you’ve likely come across Bitcoin. After all, Bitcoin is the largest cryptocurrency in terms of pricing and market capitalization &#; as well as the most recognized. 

Bitcoin was first launched best insurance investment plan in singapore &#; which also makes it the most established cryptocurrency in this market. In terms of gains, Bitcoin hasn’t grown by as much as other cryptocurrencies in this arena over the past 12 months &#; with a price increase of just 25%.  

>>>Buy Bitcoin now<<<

Your capital is at risk.

3. Ripple

Ripple is a multi-billion dollar crypto asset that was first launched in The main concept with Ripple is that it allows large financial institutions to perform cross-border transactions in a low-cost and super-fast manner. 

In fact, Ripple transactions cost just a tiny fraction of a cent and take less than five seconds to process. The underlying cryptocurrency token supporting the Ripple framework is XRP. Over the prior 12 months, XRP has increased in value by over %. 

>>>Buy Ripple Now<<<

Your capital is at risk.

4. Cosmos

Another cryptocurrency to consider adding to your portfolio in is Cosmos. This digital asset allows competing blockchains to communicate with one another &#; which is something that has never previously been possible. 

This process is known as interoperability and many expect this to play a major role in the future of blockchain technology. 

Cosmos is backed by its native token ATOM &#; which has performed very well in recent years. In fact, had you invested in Cosmos back in mid when the token was first launched on public exchanges &#; your money would now be worth % more. 

>>>Buy Cosmos Now<<<

Your capital is at risk.

5. Dogecoin

Dogecoin is an established cryptocurrency that was first launched in This digital currency became mainstream in early when Elon Musk was quoted as saying that in addition to Bitcoin and Ethereum &#; he also owns Dogecoin. 

This was followed how to invest in cryptocurrency in south africa a number of Tweets and interviews whereby Musk continued to make his bullish sentiment on Dogecoin known. In turn, this saw the value of Dogecoin increase by over 14,% in the first few months of alone.

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Your capital is at risk.

Step 2: Buy Cryptocurrency 

The specific process involved when learning how to buy cryptocurrencies can be daunting if you are completely new to this industry. 

The good news is that you can simplify the investment process by following the step-by-step walkthroughs outlined below.     

Buy Lucky Block 

In this mini-walkthrough, we will explain how to buy Lucky Block.   

1. Visit Lucky Block Pre-Sale Website

Lucky Block is yet to launch on a public exchange and as such &#; the project is offering its token on a pre-sale basis via its website. Therefore, how to invest in cryptocurrency in south africa, head over to the Lucky Block pre-sale website to get the investment process started. 

2. Connect Wallet

You will need to connect your wallet to the Lucky Block portal so that you can access the project’s pre-sale launch.     

After clicking on the ‘Unlock Wallet’ button, you can choose the wallet that you wish to use.  

3. Enter Stake 

You will now see a box that requires you to enter your desired investment amount in BNB. If you want to keep your stakes modest, the minimum investment amounts to just BNB.   

4. Buy Lucky Block

The final step is to confirm your stated investment amount.   

In doing so, how to invest in cryptocurrency in south africa, the Lucky Block tokens that you have just purchased should appear in your wallet in less than five minutes.   

www.oldyorkcellars.com Walkthrough

The next mini-walkthrough will show you how to trade cryptocurrency at www.oldyorkcellars.com 

1. Open www.oldyorkcellars.com Account

www.oldyorkcellars.com is a heavily regulated CFD broker &#; so the first step is to open an account by providing some personal information and contact details.  

For KYC purposes, how to invest in cryptocurrency in south africa, upload a copy of your government-issued ID. This should be verified automatically by www.oldyorkcellars.com &#; so you’ll be ready to go in less than two minutes.    

2. Deposit Funds

You can use a debit/credit card or e-wallet to deposit funds into your newly created www.oldyorkcellars.com at a minimum of just $ 

Or, if you wish to transfer funds via a bank wire, the minimum is much higher at $ Either way, www.oldyorkcellars.com does not charge any deposit fees. 

3. Search for Crypto Market

You can now search for the crypto market that interests you.

In our example above, we are looking to trade Ethereum against the South African rand &#; so we search for ‘ETHZAR’.     

4. Trade Crypto 

You will now need to set up your crypto trade. If you think that your chosen crypto will increase in value, click on the ‘buy’ button.  

After entering your desired stake, confirm the order. 

Step 3: Best Crypto Exchange in South Africa

One of the most important considerations to make when learning how to buy crypto in South Africa is to choose a trusted cryptocurrency exchange. 

South African traders have access to a wide variety of exchanges &#; so it’s best to focus on platforms with low fees and plenty of supported markets.   

The best crypto exchanges in South Africa are reviewed below. 

1. www.oldyorkcellars.com &#; Overall Best Place to Trade Crypto in South Africa   

There are many benefits from choosing a CFD broker like www.oldyorkcellars.com over a traditional crypto exchange. Although you will not own the underlying digital currencies that you choose to trade &#; you will still gain exposure to your desired market. And, unlike most exchanges, www.oldyorkcellars.com is heavily regulated. Furthermore, you can trade crypto at this broker without paying a commission.

Another benefit of trading crypto CFDs at www.oldyorkcellars.com is that you can apply leverage to your position. This means that you can boost the size of your stake. Moreover, you can also choose from a buy or sell order when entering your trade &#; which allows you to target profits irrespective of whether the crypto markets are up or down.       

Another core benefit of using www.oldyorkcellars.com is that you will have access to almost crypto CFD markets. This even includes crypto pairs that contain the South Africa rand. In addition to crypto, you can also trade CFDs in the form of forex, ETFs, water technology stocks investing, and commodities. www.oldyorkcellars.com supports plenty of payment methods &#; including debit/credit cards and e-wallets.   

>>> Trade Cryptocurrency in South Africa on www.oldyorkcellars.com Now <<<   

Your capital is at risk.

2, how to invest in cryptocurrency in south africa. Binance &#; Best Bitcoin Exchange South Africa With Low Fees  

If you’re wondering how to buy cryptocurrency in South Africa via a conventional exchange &#; you might consider Binance. In terms of client accounts and trading volume &#; Binance is the largest exchange globally. You will also find more than 1, tradable markets here &#; which is great for diversification.

When it comes to fees, Binance charges a commission of % per slide. This means that you will pay this commission when you both enter and exit a position. Binance is also popular with South Africans that wish to earn interest on their crypto investments. This is because Binance offers a good selection of crypto savings accounts.    

>>>Buy Cryptocurrency in South Africa on Binance Now<<< 

Your capital is at risk.

How to Buy Bitcoins in South Africa 

There are many things to consider when learning how to buy Bitcoin in South Africa. At the forefront of this is the type of platform that you use to execute your trading orders. 

The key problem with traditional cryptocurrency exchanges is that they are not % safe. Time and time again we hear about exchanges being hacked &#; which means your money is at risk.  

And as such, we much prefer CFD brokers like www.oldyorkcellars.com &#; which allow you to trade digital currencies without taking ownership of any tokens. This removes the need to worry about wallet security or hacking attempts &#; as the tokens do not actually exist. 

Furthermore, when you trade crypto CFDs at www.oldyorkcellars.com &#; you can do so at 0% commission. You can also engage in short-selling and even apply leverage to your trades. 

Conclusion

This short guide on how to buy cryptocurrency in South Africa has explained the fundamental basics that you need to know before getting started. 

If you’re ready to start trading crypto assets right now &#; you can do so without paying any commission at www.oldyorkcellars.com This top-rated CFD broker &#; offers almost crypto markets in a heavily regulated environment.   

To make a high return on investment (ROI) in consider buying cryptocurrency at presale, before it has gained mass adoption and been listed on a large exchange &#; you’ll then be able to sell it at a high price point when those happen.

>>>Buy Cryptocurrency in South Africa at presale<<<

Your capital is at risk.

FAQs

Is it legal to buy Cryptocurrency in South Africa?

South Africans can legally purchase and sell cryptocurrencies.

What Bitcoin wallet can I use in South Africa?

You can use any wallet of your choice when storing Bitcoin tokens. Just make sure that the wallet offers top security features and that you will be how to invest in cryptocurrency in south africa to send and receive funds with ease. 

How much do you need to invest in Bitcoin in South Africa?

This depends on your chosen broker For instance, if you decide to trade Bitcoin CFDs at www.oldyorkcellars.com &#; you only need to meet a minimum deposit of $20 to get started when using a debit/credit card or e-wallet. 

Is crypto regulated in South Africa?

Cryptocurrency-specific regulation is tipped to be introduced in However, nothing has been enacted into legislation as of writing. 

Where is the best place to buy Cryptocurrency?

If you’re looking to speculate on the future value of cryptocurrencies like Bitcoin, it might be worth considering a CFD broker like www.oldyorkcellars.com In doing so, you can trade almost crypto markets at 0% commission in a regulated environment. Many supported crypto pairs include the South African rand. 

Where to buy Bitcoins?

Once you have decided which cryptocurrency to buy today, you can then complete your purchase at one of the best cryptocurrency exchanges in South Africa. 

What is the cheapest crypto how to invest in cryptocurrency in south africa allows you to trade crypto at % per slide. www.oldyorkcellars.com, however &#; which is a CFD broker, allows you to trade crypto commission-free. 

 

What is the best app to buy cryptocurrency?

You can trade crypto CFDs via the www.oldyorkcellars.com mobile app &#; which is available on both Android and iOS phones.

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