South African Finance Minister Tito Mboweni confirmed that his nation’s government has created a crypto assets regulatory working group tasked with examining cryptocurrency and blockchain-related issues. according to a January 2 report from local news outlet BusinessLive. Mboweni revealed the news in a written response to a question from a member of parliament.
The minister suggested that the formation of the working group is part of the government’s effort to respond to the new technology and develop a unified regulatory framework. The group will be comprised of representatives from the Reserve Bank, the Revenue Service (Sars), the Financial Sector Conduct Authority, and the Financial Intelligence Centre.
Mboweni said that the group is expected to report on its findings some time in 2019:
“It is anticipated that, following broad industry comment and participation, the crypto assets regulatory working group will be ready to release a final research paper on the subject during the course of 2019.”
He also revealed that Sars is currently working on potential amendments to the nation’s tax forms to address issues related to cryptocurrency declarations:
He noted that Sars is unable to accurately trace the number of declarations pertaining to capital profits on cryptocurrencies as the existing income tax return forms do not make provision for taxpayers to specifically declare capital profits regarding cryptocurrency trades.
According to Mboweni, the plan is to include a new description field on the forms that would provide taxpayers with a clearer way to declare those capital profits.