SA Reserve Bank expects clarity on sandboxes, taxing bitcoin by middle 2018

The SA Reserve Bank says it is still reviewing its position on cryptocurrrency and sandboxes, and anticipates that it will be in a better place to comment on this by the middle of this year.

While the Reserve Bank’s current position on virtual currencies is set out in the Position Paper on Virtual Currencies issued in 2014, Ventureburn this week asked the Reserve Bank whether it would be allowing sandboxes for testing of blockchain and bitcoin applications.

While at present coin exchanges are required to report cryptocurrency transactions to the Reserve Bank, Ventureburn asked the Reserve Bank if it had taken a decision on implementing any further measures around the taxing of bitcoin and other digital tokens.

“The SARB (is) still in the process of reviewing its position on private crypto-currencies and innovation facilitators such as sandboxes.

“It is anticipated that such positions would be well progressed by mid this year. Larger input into these positions will be solicited at the appropriate juncture,” said media co-ordinator Ziyanda Mtshali commented in email to Ventureburn today.

The Reserve Bank says it is still reviewing its position on cryptocurrrency and sandboxes, and anticipates that it will be in a better place to comment on this by the middle of this year

In September last year the Reserve Bank said it had recently established a dedicated fintech programme to increase focus and assist the existing working groups to research and analyse technology innovations in the financial services industry.

In the same month the Reserve Bank said in a statement to Ventureburn that it has taken note of regulatory developments surrounding initial coin offerings (ICOs) and stated that in South Africa cryptocurrencies are not guaranteed by the SARB (SA Reserve Bank) and that “hence offer no recourse or protection to consumers thereof”.

Read more: ‘SA Reserve Bank offers no protection for those that take part in ICOs’