New York, Thursday, September 19, 2024 – South Africa’s tax authorities are intensifying their crackdown on non-compliant cryptocurrency traders, leveraging artificial intelligence (AI) to identify tax dodgers, reports said.
The South African Revenue Service (SARS) has begun issuing tax notices based on data obtained from licensed crypto exchanges and is enforcing compliance more rigorously.
The country has recognized digital asset exchanges as financial institutions, requiring them to share specific trader data with SARS.
This initiative follows the Financial Sector Conduct Authority’s (FSCA) licensing of several crypto firms, solidifying the country’s commitment to regulating the digital asset market.
According to reports experts at law firm Webber Wentzel suggest that AI was playing a crucial role in tracking non-compliant traders, though the full extent of its usage is still unclear.
Nevertheless, the move represents a modernization of SARS’s enforcement strategies.
Meanwhile, the South African Reserve Bank (SARB) has clarified that while individuals may use their allowances to purchase crypto, companies are restricted from foreign investments in crypto assets. Additionally, cross-border transfers solely for crypto purchases remain prohibited.
