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 countryís 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, itís 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 Singapore and registered in the British Virgin Islands, Bybit is a P2P cryptocurrency exchange offering perpetual futures products with 100:1 leverage. Bybit can process 100k transaction per second which is a great feature for leveraged trading.
- Advanced and secure technology
- Anonymous accounts
- Attractive trading bonuses
- Very low fees
- Limited asset coverage
- No option instruments
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