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South African crypto exchanges confirm receiving request for client data from tax collection body – Tax Bitcoin News

Three major cryptocurrency exchanges in South Africa recently confirmed receiving requests for customer data from the country’s revenue collectors. In a joint statement, the exchanges, (namely Altcointrader, Luno, and Valr) stated that this request, which targets “selective clients,” is made in terms of Section 46 of the (South African) Tax Administration Act. ”

Data needed for future action

Describing the tax collector’s move to access the personal information of cryptocurrency traders, the statement said that the South African Revenue Service (SARS) would pass this information on to residents involved in “mining, speculative and/or investing” the tax risk. as part of the assessment exercise. crypto-assets. For its part, the revenue collector says that the collected data “will inform the need for future action with respect to crypto-assets.”

However, according to a report goodValr, one of the exchanges contacted, has since expressed its concern with the tax collector. Its co-founder and CEO, Farzam Ehsan, explained:

We are also committed to complying with the laws and regulations governing our business. We have engaged with Sars to express our concern for the privacy of our customers’ data and we have also sought legal advice on our obligation to comply with SARS’ requests.

Exchanges say they will comply

Similarly, Marius Reitz, General Manager of Africa at Luno, said that his company will comply with the request for customer information as it is a legal requirement. For its part, Altcointrader, which “has taken legal advice to ensure that all information requested by regulators is within our legal obligation,” says it, will cooperate with SARS.

Meanwhile, this latest report from SARS seeking the help of exchanges comes weeks after tax experts warning The revenue collector was focusing on crypto traders. Similarly, tax expert David Lesperance said in his remarks during a call with News, requested South African crypto holders to contact SARS before landing on them.

However, for their part, the three South African cryptocurrency exchanges said “they offer all customers the ability to download their transaction history so that necessary tax declarations can be prepared.”

Do you agree with the stand taken by crypto exchanges? Tell us what you think in the comment section.

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