The result of mining activities is recognized as a full-fledged financial product in South Africa

  • Ultramining.com
  • 18:46 Oct 25, 2022
  • 240
The result of mining activities is recognized as a full-fledged financial product in South Africa

Experts from the Financial Sector Authority of the region (FSCA) have said that crypto will be considered as financial products. What does this mean for South African miners? This status of virtual assets will make it easier to regulate them.

A separate Financial Advisory and Intermediary Services Act (FAIS) was passed to do this. It is likely that people who mine virtual coins in South Africa will now be subject to additional tax obligations.

Eugene Du Toit, a specialist at the FSCA, provided clarity, saying that even these innovations will not allow crypto to be used as legal tender in the region.

The insider notes that Eugene Du Toit emphasized her distrust of crypto. And there is no question of virtual coins, as well as their mining, being fully legalized. This is what the FSCA representative said at a press conference.

The Financial Advice and Intermediary Services Act also refers to those who engage in mining. FSCA head Unati Kamlana hopes that the measures taken will minimize the abundance of fraudulent schemes related to the mining and sale of virtual coins.

Share to:
Related news