South African Crypto Exchanges Confirm Receiving Request for Client Data From Tax Collection Body – Taxes Bitcoin News
South African crypto exchanges have confirmed receiving a request from the country’s tax collection body, to hand over client data. The request came from the South African Revenue Service (Sars). The crypto exchange, Bitcoin.co.za, in a statement, said, “As we are a regulated company, we are obliged to comply with the request from SARS unless there are compelling reasons not to do so, which we would of course contest.”
South African crypto exchanges have confirmed receiving a request for client data from the South African Revenue Service (SARS). They also confirmed that the request was made directly by the tax collection body, and that the request was made without a court order. They advised that they have not decided whether or not to comply with the request, and that they would be discussing it with their lawyers.
The South African Revenue Service (SARS) has been actively pursuing cryptocurrency exchanges in the country, and an exchange is required to collect client information such as name, address, etc. to comply with government legislation.. Read more about taxes on cryptocurrency gains and let us know what you think.
South Africa’s three largest cryptocurrency exchanges have recently confirmed that they have received a request for customer data from the country’s tax authorities. The exchanges (namely Altcointrader, Luno and Valr) said in a joint statement that the request, which is aimed at a specific group of customers, was made under Section 46 of the Tax Administration Act (SA).
Data required for future actions
The explanation for the tax authority’s decision to access the personal data of cryptocurrency traders is that the South African Revenue Service (SARS) wishes to obtain this information as part of its assessment of the tax risk to residents involved in mining, speculating and/or investing in cryptocurrencies. For its part, the tax department says the data it collects will help determine future measures on crypto assets. However, according to the report, one of the exchanges approached, Valr, has already raised concerns with the IRS. Co-founder and CEO Farzam Ehsani explains: We are also committed to complying with the laws and regulations that govern our operations. We have contacted SARS to express our concerns about customer privacy, and we have also sought legal advice about our obligation to comply with SARS regulations.
The stock exchanges have said they will comply with
In addition, Marius Reitz, general manager for Africa at Luno, said his company will comply with the customer information requirement because it is a legal requirement. For its part, Altcointrader, which has contacted legal counsel to ensure that any information requested by regulators is consistent with our legal obligations, says it will cooperate with SARS. Meanwhile, the latest report that SARS has turned to exchanges for help comes weeks after tax experts warned that the IRS is targeting crypto traders. Similarly, in a statement in an interview with Bitcoin.com News, tax expert David Lesperance urged South African cryptocurrency holders to contact the SARS before it affects them. For their part, however, the three South African cryptocurrency exchanges said they would (all) offer customers the ability to download their transaction history to prepare the required tax returns. Do you agree with the position of cryptocurrency exchanges? Tell us what you think in the comments. Photo credit: Shutterstock, Pixabay, Wiki Commons Denial: This article is for information only. It is not a direct offer or invitation to buy or sell, nor is it a recommendation or endorsement of any goods, services or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author shall be liable, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services referred to in this article.South African crypto exchange Bitbay has confirmed receiving a request for client data from the Financial Intelligence Centre (FIC). The exchange said they are “in the process of responding” and that the authorities are obliged to provide them with the requested information.. Read more about when to buy bitcoin 2021 and let us know what you think.
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