Three leading cryptocurrency exchanges from South Africa recently confirmed receiving a request for client data from the countryâ€™s revenue collector. In a joint statement, the exchanges, (namely Altcointrader, Luno, and Valr) said this request, which targets a â€œselection of customersâ€, has been made â€œin terms of section 46 of the (South African) Tax Administration Act.â€
Data Needed for Future Action
Explaining the tax collectorâ€™s move to access crypto tradersâ€™ personal information, the statement says the South African Revenue Service (SARS) wants this information â€œas part of a tax risk assessment exercise on residents involved in â€œthe mining, speculation and/or investment in crypto-assets.â€ For its part, the revenue collector says the collected data â€œwill inform the need for future action with respect to crypto-assets.â€
However, according to a report, one of the approached exchanges, Valr, has since expressed its concerns with the tax collector. Its co-founder and CEO, Farzam Ehsani, explained:
Exchanges Say They Will Comply
Similarly, Marius Reitz, the general manager for Africa at Luno said his company will be complying with the request for client information as this is a legal requirement. For its part, Altcointrader, which has â€œtaken legal counsel to ensure that all information requested by regulators is within our legal obligation,â€ says will cooperate with SARS.
Meanwhile, this latest report of SARS seeking the exchangesâ€™ assistance comes a few weeks after tax experts warned the revenue collector was zeroing on crypto traders. Similarly, tax expert David Lesperance, in his remarks during a call with Bitcoin.com News, urged South African crypto holders to approach the SARS before it descended on them.
However, for their part, the three South African cryptocurrency exchanges said â€œthey (will) all provide the ability for customers to download their transaction history to prepare any tax declarations that are required.â€
Do you agree with the stance that has been taken by crypto exchanges? Tell us what you think in the comments section.
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