New Regulations Affecting the Reporting on Crypto Assets and Digital Financial Products
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SARS promulgated 2 new regulations, in Notice 6887 dealing with crypto-asset reporting and Notice R.6886 updated for better alignment with the OECD’s Common Reporting Standard (CRS) for the automatic exchange of financial account information between countries.
Crypto-Asset Reporting Regulation
South Africa has officially adopted the OECD’s new Crypto-Asset Reporting Framework (CARF). This global standard is designed to ensure countries can automatically share tax-related data on crypto transactions.
What You Need to Know
✅Crypto service providers based in SA or doing business here must report transactions involving crypto assets.
✅This includes info on customers (like name, tax ID, country of residence), types of crypto assets, and transaction volumes.
✅Due diligence and self-certification rules apply to both individuals and businesses.
✅Exemptions apply if the provider already complies with similar rules in another partner jurisdiction.
Why it matters
This means crypto is now squarely in the tax compliance spotlight. If your clients deal with digital assets, new disclosure and record-keeping obligations are coming fast.
Updated Financial Account Reporting Standard
South Africa is updating its alignment with the OECD’s Common Reporting Standard (CRS) for the automatic exchange of financial account information between countries.
Key changes include
✅Enhanced definitions and scope to include digital financial products and entities.
✅Clarified due diligence processes for financial institutions.
✅Broader exchange rules to reduce loopholes and improve transparency.
Why it matters
Financial institutions will face more rigorous compliance duties, and clients may be required to provide more detailed tax residency and ownership information. Expect tighter scrutiny of offshore holdings.
Bottom Line
If your practice works with clients who invest in crypto or hold offshore accounts, prepare them now for:
✅ More reporting
✅ Stricter due diligence
✅ Global transparency.
