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
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Humanity Protocol Collaborates with OKX Wallet to Redefine Decentralized Identity Verification and Reward Users
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Blockchain
Blocks & Headlines: Today in Blockchain (BRICS, Hungri Games, Nano Labs, MetaHorse Unity)
Building Customer Trust in AI with Blockchain
Blockchain is emerging as a critical tool in addressing the trust deficit in artificial intelligence. By leveraging decentralized ledgers, companies can provide transparent data provenance, ensuring that AI algorithms operate ethically and without bias. This integration allows customers to verify the origins of data used in AI models, fostering greater confidence.
Businesses deploying blockchain for AI governance must prioritize simplicity and accessibility in their implementations. While the technology’s potential is immense, it is essential to communicate its benefits in a manner that resonates with non-technical stakeholders.
Source: Harvard Business Review
Blockchain at a Crossroads: Balancing Promise and Peril
As blockchain technology matures, it finds itself at a crossroads. On one side, the promise of decentralization continues to captivate industries, offering solutions for supply chain management, finance, and digital identity. On the other, challenges such as regulatory scrutiny, scalability issues, and energy consumption threaten to impede its growth.
The path forward will require a concerted effort from developers, regulators, and industry leaders. Collaborative frameworks that address these challenges while preserving blockchain’s core principles of decentralization and transparency are key to ensuring its sustained relevance.
Source: Cointelegraph
BRICS vs. USD: Blockchain’s Role in Economic Shifts
The BRICS nations (Brazil, Russia, India, China, and South Africa) are exploring blockchain-based solutions to reduce their reliance on the US dollar in international trade. By adopting decentralized technologies, these nations aim to foster economic independence and promote stability in the face of geopolitical tensions.
This initiative exemplifies blockchain’s potential to redefine global financial systems. However, its success hinges on addressing interoperability issues and fostering international collaboration. The evolution of blockchain-based trade networks could mark the beginning of a new era in economic diplomacy.
Source: CoinGeek
Hungri Games Expands MetaHorse Unity to Base Blockchain
Hungri Games has announced the expansion of its MetaHorse Unity project to the Base blockchain, aiming to enhance the gaming experience with improved scalability and lower transaction costs. This move aligns with the growing trend of integrating blockchain into gaming to create transparent and secure ecosystems.
By adopting Base, a layer-2 blockchain, MetaHorse Unity seeks to offer players a seamless and cost-effective gaming experience. The partnership highlights the potential of blockchain to transform the gaming industry, enabling innovative monetization models and fostering player engagement.
Source: CoinTrust
Nano Labs Purchases Trump Tokens to Celebrate Presidency
Nano Labs commemorated former President Donald Trump’s legacy with the acquisition of 47 Trump Tokens. This symbolic gesture underscores the intersection of blockchain technology and cultural milestones, showcasing how tokens can represent historical and social narratives.
The purchase also highlights the increasing role of blockchain in creating unique, tradable assets that capture moments in time. As tokenization continues to gain traction, it is redefining how value and significance are assigned in the digital age.
Source: PRNewswire
Final Thoughts: Blockchain’s Expanding Horizons
This week’s developments highlight the diverse applications of blockchain technology, from fostering trust in AI to reshaping global economic systems. As the industry navigates challenges and opportunities, collaboration and innovation will be crucial in unlocking blockchain’s full potential.
While hurdles such as scalability and regulation persist, the technology’s ability to drive transparency, security, and inclusivity remains unparalleled. The coming years will undoubtedly see blockchain continue to evolve, solidifying its role as a transformative force across sectors.
The post Blocks & Headlines: Today in Blockchain (BRICS, Hungri Games, Nano Labs, MetaHorse Unity) appeared first on News, Events, Advertising Options.
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