How to Buy Cryptocurrency in South Africa
Buying cryptocurrency in South Africa
While people and businesses do use and accept cryptocurrencies as a payment method and as an exchange medium, the South African Reserve Bank (SARB), the country’s central bank, is yet to officially acknowledge digital currencies as legal tender. Be that as it may, all cryptocurrency earnings are still taxable. Luno, a cryptocurrency trading platform in South Africa, reported that those in possession of cryptocurrencies like Bitcoin should consider consulting a tax professional to ensure they remain tax compliant. However, Brandon Topham, the Divisional Executive for Investigations and Enforcement at the FSCA stated that as long as individuals acquire their crypto using proper banking mechanisms, it’s completely fine to buy crypto assets. However, South Africa announced its plans to create a regulatory framework for cryptocurrencies like Bitcoin in 2021. Along with protecting individuals, these new regulations clear the way for expanding products with cryptocurrencies as their so-called underlying basket of investments.
As of 20/03/2021
These exchanges all accept customers from South Africa. While they broadly offer the same services and you can buy cryptocurrency at all of them, there can be differences in transaction fees, security, verification requirements, deposit methods and features, as shown below
Based in Isle of Man. Over 200,000 customers with min deposit as little as ÂŁ5. Simple site for getting into Bitcoin.
- Simple user interface
- Autobuy feature for regular crypto saving / DCA
- You can earn Bitcoin on your shopping with their browser extension
- Limited range of coins
- No e-wallet feature
- No live chat support
Operating since 2012, Bitfinex has a huge range of coins and trading pairs, a good user interface and low trading fees.
- Very low trading fees
- Large range of coins and trading pairs
- High liquidity
- Slow account verification
- Two major hacks
OKEx is the second-largest cryptocurrency exchange in the world by volume. It posts over $2 billion in trades daily and has over 400 trading pairs.
- Good range of coins
- DEX trading
- No hacking history
- Not available in US
- KYC required
Founded in 2017, KuCoin has already managed to establish itself as â€śThe Peopleâ€™s Exchange.â€ť With 200+ cryptocurrencies and more than 400 markets, it has become one of the hubs for cryptocurrency trading.
- Vast selection of altcoins
- Ability to stake & earn crypto yields
- Robust security features
- No forced KYC checks
- No fiat currency deposits
- Trading volume is low
Changelly allows you to trade cryptocurrency without registration or verifying the identity through KYC. Being a non-custodial exchange, Changelly doesnâ€™t require you to keep any deposits. The platform also works as a fiat-to-crypto gateway.
- Non-custodial exchange
- Great way to switch altcoins
- Doesnâ€™t require extensive KYC
- 2FA security and high exchange limit
- A high transaction fee of 0.5%
- Unclear owners
- Sometimes their service is quite slow
Kraken has a good reputation for security and protection of your funds and operates across the USA (except NY), Canada, the EU and Japan
- It can be used to trade against fiat options
- Robust security measures
- Free SEPA deposits in Europe
- Not a very beginner-friendly interface.
- No card deposit options