Cryptocurrency in South Africa is a popular topic. Especially with traders in South Africa. However, this is a hot topic lately in South Africa. The question of whether South Africa is going to ban Cryptocurrency is on everyone’s lips. What is the truth about South Africa and its cryptocurrency rules and regulations? And, are they going to ban the currency on a permanent basis?
Before you start trading with cryptocurrencies, you need to make sure that you know if South Africa is going to ban them or not. To make sure that you don’t lose any money when they do prohibition on cryptocurrencies.
Reasons why South Africa might ban cryptocurrency
One thing you really need to understand is that cryptocurrencies aren’t going to be banned in South Africa. Not if you are doing it on a personal basis. However, there are some really strict rules and regulations about investing in cryptocurrencies at the moment.
The main reason for these restrictions is because of a scam with pension funds and cryptocurrencies that were made public. This is where people’s pension fund is being used to invest in cryptocurrency. At the end of the day, everyone that used that pension fund company has lost all their pension money. Leaving them with nothing when they retire. The government wants to try to prevent this from every happening again.
The only change that was made in South Africa is that the South African pension funds be banned from investing in these currencies under the new draft rules.
Is it legal to buy crypto in South Africa?
There isn’t really a yes or no answer when it comes to if it’s legal to buy crypto in South Africa. If you are buying it for personal trading then it’s legal. South Africa has gotten stricter with its rules for crypto traders. However, you can still buy and sell crypto.
Only if you are starting a company for pension funds, and you use their money to buy crypto, it becomes illegal. Under no circumstances is it allowed to gamble with other people’s pension funds. At the moment there are still discussions about the new rules and regulations about South Africans investing in crypto.
The problem that the South African government has with cryptocurrencies, is the fact that people are using them for money laundering and the risks involved. To put it in short, yes, it is legal to buy cryptocurrencies in South Africa, if you are doing it correctly and submit it to SARS for evaluations.
What will happen if South Africa ban cryptocurrency?
What will happen when they are banning cryptocurrencies in South Africa. First of all, when this happens, all the money you have invested in crypto will be worth nothing. Meaning that people that already have invested in crypto will lose thousands.
Because of the different types of cryptocurrencies available in the world, and all the VPN services you can use, it will be hard to completely ban cryptocurrencies. The country will also lose money in the tax that South Africans are paying for the trading profits that they are making with crypto.
The facts are that cryptocurrencies will never be able to be banned completely. No matter how hard a country tries.
Does South Africa have its own cryptocurrency?
This is something that not many South Africans know. Yes, South Africa has its own cryptocurrency that you can trade with. However, this is still a new currency, and it isn’t as successful and valuable as other currencies at the moment.
SAFCOIN is the South African crypto. It was launched exclusively to South Africans in 2018. Now it is going global and is listed on HotBit. HotBit is one of the world’s leading cryptocurrency trading platforms. The list date was scheduled for September 22, 2021. SAF deposits commence at 6:00 am and live trading commencing at 8:am(UTC timezone).
People are surprised about the South African cryptocurrency. This is because of the success that it has on the market. Despite the fact that the Rand is trading very low against other currencies. Why will they ban cryptocurrency if they have their own currency?
More about SAFCOIN
The currency was first launched in 2018 by two founders, Neil and Michela Ferreira. They worked together with Tony Ferreira to create SAFCOIN. First, it was only for South Africans to trade with SAFCOIN, but during 2021 it was listed on HotBit. This is an international, and one of the leading cryptocurrency trading platforms. And, till now it is relatively successful on the platform.
Will South Africa ban cryptocurrency? No, they will not ban cryptocurrency completely. They have put a restriction on trading with crypto by pension fund companies. The truth is that South Africa’s government is making a lot of money with the crypto tax that people are paying. For those that don’t know this, South Africa has their own cryptocurrency that people can trade with. It is called SAFCOIN and is a huge success on some of the leading crypto trading platforms. There is no reason for South Africans to panic with the rumors that South Africa is banning crypto trading. They are just making the rules for trading stricter.