a Conservatively Optimistic Approach

As one of the bigger economic hubs of Africa, it has the potential to lead the way in terms of blockchain development and cryptocurrency adoption.

"Cryptocurrencies are neither official South African tender nor widely used and accepted in South Africa as a medium of payment or exchange. As such, cryptocurrencies are not regarded by SARS as a currency for income tax purposes or Capital Gains Tax. Instead, cryptocurrencies are regarded by SARS as assets of an intangible nature."

The value of a given amount of cryptocurrency can be valued in South African rands, and any income received or accrued from cryptocurrency trading can be taxed under the laws of gross income.

Simply put, South Africans that are actively trading cryptocurrency will be liable to pay tax on any income made.

In a South African context, the use of cryptocurrencies is legal.

The Reserve Bank issued a white paper outlining its views on cryptocurrencies in 2014.

Cryptocurrencies fall outside the jurisdiction of the Reserve Bank.

In layman's terms, the Reserve Bank doesn't view cryptocurrencies as an alternative to fiat currency, in fact it doesn't view them as legitimate currencies at all.

In May 2018, the SARB made it clear that it still doesn't classify cryptocurrencies as money.

This is why, in a South African context, a slow and methodical approach to cryptocurrency regulation is a definite positive.