Blockchain
Crypto traders feeling the heat from Sars
South African Revenue Services (SARS) Intensifies Scrutiny on Crypto Traders
Crypto traders in South Africa have begun receiving notices from the South African Revenue Services (SARS) indicating that their tax affairs are under review based on data received from various crypto asset exchanges. SARS warns that failure to provide requested information could be deemed a criminal offence under the Tax Administration Act.
A Rigorous Approach to Revenue Collection
Jashwin Baijoo, head of strategic engagement and compliance at Tax Consulting SA, notes that this move is part of SARS’s comprehensive strategy to maximize revenue collection. “For years, crypto asset traders have operated under the misconception that their crypto profits were beyond SARS’s reach,” says Baijoo. “SARS has now made it clear that, just as they can demand transactional records from banks, they can do the same with crypto exchanges.”
Historical Non-Declaration Under Scrutiny
Baijoo warns traders not to assume that SARS will overlook historical non-declaration of crypto holdings, emphasizing the importance of full disclosure of both local and foreign crypto transactions for verification purposes.
Lack of Clear Guidance from SARS
According to Wiehann Olivier, partner and head of fintech and digital assets at Forvis Mazars, SARS currently lacks automatic access to crypto exchange information and must request this data case-by-case. Olivier expresses concern over SARS’s focus on prosecution without providing clear guidance to taxpayers. “SARS has not clarified when a cryptocurrency transaction is considered capital or income, merely stating that the normal rules apply,” he says.
Challenges in Record-Keeping
Maintaining accurate records of gains and losses from high-volume crypto trades, especially those involving multiple trading pairs, is challenging. Specialized tools that integrate with exchanges through API or track on-chain data are necessary. Olivier notes that while SARS is reportedly using AI to identify non-compliance, the effectiveness of this depends on the quality of data available.
Resource Limitations
Olivier also highlights the significant resources and manpower required for SARS to investigate and engage with taxpayers effectively, suggesting that the focus may primarily be on high-net-worth individuals.
Exchange Control Regulations
Another issue is the monitoring of exchange control regulations by the South African Reserve Bank, especially when traders use automated bots for arbitrage opportunities between South African and international exchanges. Olivier points out that this aspect has not received adequate attention.
Future Proficiency in Tracking Undeclared Profits
SARS is expected to become more proficient at tracking undeclared crypto profits using a combination of electronic forensic services, AI, and experienced auditors. This enhanced capability, along with the threat of criminal penalties, is likely to deter traders from evading tax obligations. Access to both local and foreign exchanges will be crucial for SARS to fully grasp the tax implications of crypto transactions.
Source: moneyweb.co
The post Crypto traders feeling the heat from Sars appeared first on HIPTHER Alerts.
KuCoin, one of the world’s leading cryptocurrency exchange platforms, has announced the implementation of a 7.5% Value-Added Tax (VAT) on transaction fees, effective July 8th, 2024. This new regulation will impact all users whose Know Your Customer (KYC) information is registered in Nigeria. The VAT will be applied exclusively to transaction fees, not the overall transaction amount.
For example, if a user buys 1,000 USDT worth of Bitcoin, they would typically incur a fee of 1 USDT at the standard 0.1% fee rate. With the new VAT, an additional charge of 0.075 USDT would be applied to this fee, resulting in a total fee of 1.075 USDT. Consequently, the net amount available for the transaction would be 998.925 USDT. KuCoin clarified that the VAT would cover all types of transactions on its platform. This move aligns with recent regulatory updates and demonstrates the company’s commitment to complying with local tax laws.
The announcement has garnered mixed reactions from the Nigerian cryptocurrency community. Some users have expressed concern over the added cost to their transactions, while others recognize it as a necessary step towards greater regulatory compliance and legitimacy for cryptocurrency trading in Nigeria. KuCoin encourages affected users to seek assistance through their Telegram group or by contacting the online support team for further guidance on the new tax regulations.
As Nigeria continues to evolve its regulatory framework for digital assets, this development underscores the importance for traders to stay informed about local laws and their potential impacts on trading activities. The KuCoin team expressed their gratitude for users’ cooperation and understanding, reiterating their commitment to providing a secure and compliant trading environment.
KuCoin’s introduction of a 7.5% VAT on transaction fees for Nigerian users marks a significant step in aligning with local tax regulations. While the additional cost may concern some users, it underscores the importance of regulatory compliance in fostering a legitimate and sustainable cryptocurrency trading environment in Nigeria.
Source: investorsking.com
The post KuCoin Announces New 7.5% VAT on Transaction Fees for Nigerian Customers appeared first on HIPTHER Alerts.
New Zealand’s Inland Revenue Department (IRD) has announced that over 200,000 citizens failed to declare their cryptocurrency income in their tax returns. The tax authority emphasized that virtual assets are taxable and outlined plans to take stronger measures to track and ensure compliance among those not disclosing their digital asset earnings.
IRD Issues Letters to Crypto Taxpayers
The IRD is honing in on taxpayers who have not declared their crypto earnings, focusing particularly on those actively dealing with cryptocurrencies but omitting this income from their tax returns. New Zealand updated its guidelines on digital assets in 2020, treating cryptocurrencies as a form of property for tax purposes. Consequently, income from trading these assets is taxable.
The updated rules specify that digital assets and income earned from mining are taxable under certain circumstances. The IRD has identified over 227,000 unique crypto users in the country, with over 7 million transactions valued at NZD 7.8 billion (approximately USD 4.77 billion). This data has enabled the tax authority to pinpoint individuals who have not paid their taxes accordingly and those with significant holdings.
Stepping Up Compliance Activities
Trevor Jeffries, an IRD spokesperson, highlighted that the current high values of crypto assets make it an opportune time for investors to consider their tax obligations. He stressed the importance of declaring all taxable activities and warned of the risks associated with non-compliance.
The IRD has provided extensive guidance on crypto taxes and last year notified high-risk customers, giving them a chance to rectify non-compliance issues before facing an audit. The department has sent a new round of letters to crypto investors who have yet to declare their income properly.
Jeffries noted that the IRD is stepping up compliance activities for taxpayers with digital assets and reminded users that the authority can identify them through blockchain analytics. The IRD collaborates with exchanges both domestically and internationally to gather relevant information and works with other tax jurisdictions to receive data on customers’ crypto assets and transactions outside New Zealand.
Need for Comprehensive Crypto Regulations
Despite the IRD’s efforts, New Zealand’s crypto regulations remain largely undeveloped. The Reserve Bank of New Zealand (RBNZ) stated last year that a regulatory approach was not yet necessary but called for increased vigilance. However, Minister of Commerce and Consumer Affairs Andrew Bayly believes the government should adopt a more hands-on approach to regulating the sector. In April, Bayly suggested that New Zealand should take a proactive and innovation-friendly approach to digital assets and blockchain, supporting the industry’s growth and considering recommendations from a lawyer committee inquiry.
New Zealand’s IRD is actively pursuing taxpayers who have not declared their cryptocurrency income, emphasizing the importance of compliance in light of updated guidelines. While the country’s regulatory framework for crypto remains in development, the IRD’s actions indicate a growing focus on ensuring that digital asset transactions are properly reported and taxed. As the crypto market continues to evolve, both investors and authorities must navigate the complexities of taxation and regulation to foster a fair and transparent financial environment.
Source: bitcoinist.com
The post New Zealand Chases 200,000 Crypto Investors For Untaxed Income appeared first on HIPTHER Alerts.
IOTA has announced a strategic partnership with Tokeny to integrate Tokeny’s enterprise-level tokenization technology into the IOTA Ethereum Virtual Machine (EVM). This collaboration aims to improve on-chain compliance and control over token transactions, ensuring that only qualified investors can participate, according to the IOTA Foundation Blog.
Enhancing Enterprise-Level Tokenization on IOTA EVM
For companies venturing into decentralized finance (DeFi), adhering to legal requirements such as anti-money laundering (AML) and securities regulations is crucial. Compliance protects investors, ensures transparency and fairness, maintains market integrity, and builds trust—essential elements for the sustainability of financial markets. Additionally, compliance allows companies to access critical financial services, maintain their reputation, and expand globally.
Key Integration Details: Tokeny Meets IOTA EVM
The integration of IOTA EVM with Tokeny’s technology aims to bolster enterprise tokenization and secure digital asset management within IOTA’s ecosystem. Tokeny, a leader in white-label tokenization platforms, will enhance how enterprises leverage IOTA EVM by integrating its cutting-edge compliance technology for enterprise-level tokenization.
IOTA EVM:
- Designed to be a high-velocity, plug-and-play environment.
- Supports the seamless deployment and management of smart contracts within the IOTA network.
- Leverages IOTA’s core strengths, making it an ideal platform for enterprises looking to innovate with tokenization solutions.
Tokeny’s Compliance Infrastructure:
- Uses the ERC-3643 open-source suite of smart contracts to facilitate the issuance, management, and transfer of permissioned tokens.
- Integrates automated on-chain compliance checks to ensure transactions are restricted to verified investors.
- Provides issuers with control over their tokens, including capabilities to freeze or recover them if necessary.
Leadership Insights
Luc Falempin, CEO of Tokeny: “This partnership aligns with our vision of enabling institutions to leverage desired network benefits. IOTA’s unique Layer 1 protocol architecture enables scalability and fee-less transactions. Our role is to facilitate rapid tokenization to accelerate adoption and meet evolving market demands.”
Dominik Schiener, Co-Founder of IOTA: “We are thrilled about Tokeny’s integration as it perfectly aligns with our mission to democratize access to tokenized real-world assets (RWA) and financial instruments in our ecosystem. Tokeny stands out as the most advanced institutional-grade tokenization platform supporting market standard ERC-3643, poised to accelerate institutional tokenization on IOTA EVM.”
Impact on Enterprises
Enterprises and developers looking to tokenize assets securely on IOTA EVM can now conduct large transactions with the assurance of automatic compliance checks, thanks to Tokeny. This ensures interactions only with qualified investors and provides complete control over digital assets.
This integration not only opens up new possibilities for efficiently managing and transferring digital securities but also ensures that these processes meet stringent compliance standards. Whether the goal is to issue, transfer, or manage digital assets, the enhanced IOTA EVM, bolstered by Tokeny’s technology, offers a robust foundation for enterprise projects.
Source: blockchain.news
The post IOTA Partners with Tokeny to Enhance Enterprise-Level Tokenization appeared first on HIPTHER Alerts.
-
Blockchain Press Releases3 days agoHTX to Upgrade Broker Program Rules, Offering More Flexible Commission Model and Limited-time Benefits
-
Blockchain22 hours agoVirgin Galactic regains NYSE compliance with stock price
-
Blockchain2 days ago
Tether, the largest stablecoin issuer by market capitalization, is expanding its presence in Turkey through a new collaboration aimed at exploring various tokenization use cases among Turkish financial lenders. In a recent blog announcement, Tether revealed that it has signed a Memorandum of Understanding (MoU) with the crypto consultancy firm BTguru to develop comprehensive programs and leverage BTguru’s connections to facilitate discussions with financial institutions in Turkey. The collaboration will primarily focus on asset tokenization, exploring real-world asset tokenization use cases for banks. This initiative aims to harness the benefits of tokenization to enhance the efficiency and transparency of financial transactions. Real-world asset (RWA) tokenization could potentially allocate trillions of U.S. dollars. Analysts at McKinsey & Company estimate that the sector’s market capitalization could reach approximately $2 trillion by 2030 under a base scenario. This partnership coincides with significant regulatory developments in Turkey. Turkish President Recep Tayyip Erdoğan recently signed a new bill into law that regulates the crypto industry and outlines penalties for non-compliance. Crypto exchanges seeking to operate legally in Turkey must obtain a license from the Capital Markets Board, the country’s financial regulatory and supervisory agency. Unauthorized crypto platforms offering trading services could face prison sentences of three to five years. Additionally, the new law imposes fines ranging from $7,500 to $182,600 and mandates that crypto providers implement and report measures such as seizures and other legal enforcement actions. The collaboration between Tether and BTguru reflects a strategic move to align with Turkey’s evolving regulatory landscape while fostering innovation in the financial sector. By focusing on tokenization, Tether aims to provide Turkish banks with advanced tools to tokenize real-world assets, potentially transforming traditional banking practices and enhancing compliance with new regulations. This initiative not only positions Tether at the forefront of financial innovation in Turkey but also sets a precedent for other crypto firms looking to navigate complex regulatory environments. As Tether deepens its engagement with Turkish financial institutions, the move could encourage broader adoption of blockchain technology in traditional finance, thereby fostering a more integrated and compliant digital asset ecosystem. The strategic partnership with BTguru and the proactive approach to regulatory compliance underscore Tether’s commitment to expanding its global footprint while adhering to local laws and promoting the benefits of asset tokenization in the financial sector.
-
Blockchain Press Releases13 hours agoBosera HashKey BTC and ETH ETFs Top Asian Markets
-
Blockchain1 day ago
SMX Launches Blockchain Solution for Enhanced Supply Chain Transparency
-
Blockchain22 hours ago
Blockchain, GenAI reshaping fund distribution: Clearstreams’s Philippe Seyll
-
Blockchain22 hours ago
Crypto Exchange Bitget Looks to Expand to India as Regulated Platform
-
Blockchain22 hours ago
Circle Tightens Grip on Stablecoin Payment Market as Tether Opts Out of Approval
