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
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Blockchain
Blocks & Headlines: Today in Blockchain – January 30, 2025 (Dogecoin, U.S. Army, DeepSeek, Web3)
Introduction
The blockchain and cryptocurrency industry continues to evolve, with major advancements in institutional adoption, regulatory modernization, and innovative applications. Today’s roundup covers Dogecoin’s new blockchain strategy, the U.S. Army’s use of blockchain for tracking aid, notable blockchain startups, domain challenges for Web3 companies, the first AI blockchain agent, and Luxembourg’s legal updates for custody chains. Let’s break down the biggest headlines shaping the future of blockchain technology and decentralized finance.
Dogecoin Unveils Strategic Blockchain Movement
Expanding Beyond a Meme Coin
Dogecoin, often viewed as a lighthearted cryptocurrency, is making serious strides toward blockchain utility with a new strategic initiative aimed at expanding its use case beyond simple transactions. The Dogecoin Foundation has announced plans to integrate layer-2 solutions, smart contracts, and interoperability features, potentially positioning DOGE as a serious competitor in the decentralized finance (DeFi) space.
This move signals a shift in the perception of Dogecoin, which has long relied on community-driven momentum. With the new strategy, DOGE could become an integral part of the growing Web3 ecosystem.
Source: Crypto Briefing
U.S. Army Utilizes Blockchain for Aid Tracking in Ukraine
Military Adopts Emerging Tech for Transparency
The U.S. Army is leveraging blockchain, big data, and generative AI to track billions of dollars in aid sent to Ukraine. This marks a significant step in blockchain’s adoption by governments and defense agencies to enhance transparency and prevent fraud.
By using blockchain for immutable record-keeping, military officials aim to improve logistics tracking, reduce inefficiencies, and ensure secure auditing of aid distribution. This could set a precedent for future government adoption of blockchain-based verification systems.
Source: Breaking Defense
10 Blockchain Startups to Watch in 2025
Innovation Driving the Next Wave of Web3
A new report highlights ten emerging blockchain startups poised to disrupt industries from finance to supply chain management. These companies are working on scalable smart contracts, decentralized identity solutions, and improved cross-chain interoperability.
Among the standout names are startups focusing on privacy-preserving transactions, institutional DeFi tools, and real-world asset tokenization, reinforcing blockchain’s growing role in mainstream finance and enterprise adoption.
Source: Yahoo Finance
Web3 Companies Struggle with Domain Name Challenges
Decentralization vs. Traditional Domain Ownership
As blockchain companies push forward with Web3 adoption, many are encountering significant hurdles in securing relevant domain names. Unlike traditional domains governed by ICANN, blockchain-native domains such as .crypto and .eth exist outside standard regulatory frameworks, leading to disputes and accessibility issues.
Industry experts are calling for greater collaboration between blockchain projects and domain registrars to ensure seamless Web3 adoption while maintaining online accessibility for users.
Source: Domain Name Wire
Klaus Agent Becomes the First Blockchain AI to Use Custom DeepSeek Model
AI and Blockchain Converge
The Klaus Agent, an AI-powered blockchain agent, has integrated the DeepSeek AI model to enhance decision-making, smart contract automation, and decentralized application (dApp) intelligence. This innovation represents a major step in merging artificial intelligence with blockchain networks, allowing for more sophisticated automation in DeFi, NFT trading, and DAO governance.
As AI and blockchain continue to converge, the potential for autonomous smart contract execution and predictive analytics is expected to grow, leading to more efficient decentralized systems.
Source: GlobeNewswire
Luxembourg Modernizes Custody Chain Laws for Blockchain
A Legal Framework for Tokenized Assets
Luxembourg, a key financial hub in Europe, has updated its custody chain regulations to accommodate blockchain-based assets. These changes are designed to facilitate institutional adoption of tokenized securities and digital asset custody solutions.
By providing a clear regulatory framework, Luxembourg aims to attract fintech firms, investment funds, and digital asset custodians, further strengthening its position as a leader in blockchain finance.
Source: National Law Review
Conclusion
The latest blockchain developments underscore the rapid evolution of the industry, from Dogecoin’s strategic shift to military adoption of blockchain for transparency. As AI and blockchain begin to merge, and governments refine regulations, we are witnessing a pivotal moment in decentralized technology.
With institutional interest growing and regulatory frameworks taking shape, blockchain and Web3 technologies are moving closer to mainstream acceptance. Stay tuned for the next Blocks & Headlines briefing as we continue to track the most significant trends shaping the future of decentralized finance and digital assets.
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Blockchain
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Blockchain
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