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South Africa is ramping up its cryptocurrency tax system with the announcement of new compliance measures. The South African Revenue Service (SARS) has revealed it is integrating crypto assets into the compliance framework to ensure crypto taxpayers are not evading taxes. The move aims to speed up the detection and reporting of undeclared cryptocurrency holdings as tax authorities across the world struggle to cope with rising crypto-related frauds. The tax-collecting authority is working with the Financial Sector Conduct Authority (FSCA) to identify non-compliance issues among crypto taxpayers. SARS has also roped in crypto service providers for this purpose. The present South African tax law takes a decentralised approach to regulating the cryptocurrency market, which makes it difficult for tax authorities to monitor crypto transactions. However, new crypto tracking technologies have made it easier for crypto service providers to collaborate with regulatory bodies to tackle tax evasion issues. Part of the new measures include public awareness campaigns to make crypto taxpayers aware of their obligations and establishing a data-sharing protocol with crypto service providers and the FSCA, which will lead to effective monitoring of suspicious activities using advanced tools. Crypto taxpayers will be encouraged to disclose previously undeclared crypto assets without any penalties through the Voluntary Disclosure Program (VDP), revealed SARS. As per the tax authority, all cryptocurrency investors and users in South Africa should strictly follow this mandate, as non-compliance can result in penalties like fines and legal action. In South Africa, cryptocurrencies are treated as assets, not just a currency, which makes them fall under capital gains tax (CGT) upon disposal. Cryptocurrency traders are treated as people doing business, making their profits taxable as income. At present, the supply of cryptocurrency is zero-rated for Value Added Tax (VAT) purposes. Tax consultants and crypto market analysts are optimistic about the new measures. While cryptocurrency analysts like Dr Thabo Mokoena have termed it “a significant step towards ensuring transparency and accountability in the South African cryptocurrency market," tax consultant Linda Nkosi thinks "by leveraging data-sharing mechanisms, SARS can more accurately identify and address instances of non-compliance." So far the new SARS initiatives seem to hold mixed implications for the South African crypto market, as they can boost investor confidence and market legitimacy and also make way for higher operational costs and privacy concerns. Crypto taxpayers in the country have to stay informed about their obligations and accurately report their digital asset holdings, in line with global trends amongst tax agencies in the crypto sector. According to the International Monetary Fund (IMF), tax agencies in more than 60% of countries across the world are considering cryptocurrency tax measures.

The United Arab Emirates has announced a significant tax exemption for cryptocurrency transactions. According to The Federal Tax Authority (FTA), from November 15, 2024, all cryptocurrency exchanges and conversions will be exempt from Value Added Tax (VAT). The move aims to attract both individual and institutional investors. It marks a departure from previous regulations: crypto transactions were subject to a 5% VAT rate. This tax was seen as a barrier to entry for many potential investors. The removal of this taxation is expected to open up the market. It may also invite newcomers to explore the digital asset space. "The UAE has exempted cryptocurrency transfers and conversions from value-added tax," the FTA stated. This positions the UAE as a more crypto-friendly jurisdiction for digital asset transactions. The measure is designed to boost the sector and establish the UAE as a leader in blockchain innovation. One notable aspect of this policy is its retroactive nature. Individuals and businesses that have been paying VAT on cryptocurrency transactions since January 1, 2018, may be eligible for refunds. This could result in significant returns for those active in the crypto market over recent years. Business consultancy firm PwC commented on the potential impact. "Given the impact of these amendments on a firm's VAT position, companies could recover a lot of tax paid in the past," they noted. The exemption extends beyond basic transfers and conversions. It also includes investment fund management and virtual asset ownership transfers. This comprehensive approach is likely to attract crypto exchanges and entrepreneurs to the UAE. The move comes at a time when many countries are still grappling with cryptocurrency regulation. Some nations, such as China and India, have taken more restrictive approaches. In contrast, the UAE is creating conditions favorable to innovation and investment. This policy may set a new benchmark for other countries to follow. As global competition for crypto investment intensifies, the UAE's approach could influence regulatory decisions elsewhere. The UAE's decision reflects its commitment to becoming a global cryptocurrency hub. It also demonstrates the country's willingness to adapt its tax policies to support emerging technologies and financial innovations.

South Korea's crypto taxation saga continues. The government is eyeing a third postponement of its cryptocurrency gains tax. This move comes as investors voice concerns over system readiness and market uncertainty. A six-year setback looms. The ruling party's new bill could push the tax implementation to 2028. That's a far cry from the original January 2022 start date. Why the holdup? It's a mix of investor anxiety and political calculation. The daily trading volume has taken a nosedive since Q1 2024. In March, it hit 20 trillion won ($14.5 billion). Now it's down to a measly 2 trillion won. Industry bigwigs are spooked. They reckon the tax could send investors packing. "Most will bail, and trading will tank even more," one insider muttered. Politicians are playing it safe. With 6.5 million crypto investors in South Korea, they're treading carefully. Half of these punters are in their 30s and 40s – a demographic that packs a punch at the ballot box. But not everyone's buying it. Critics slam the government for being too easily swayed. "They're dancing to the taxpayers' tune," one naysayer grumbled. Some officials are calling BS on the "lack of system" excuse. They point out that the government's had three years to get its act together. "They're just not pulling their weight," one critic fumed. There's a worry that this delay could make the tax law toothless. The same old excuses could crop up again come 2028. The Finance Ministry's staying mum for now. They'll spill the beans by month's end. In the meantime, crypto traders are holding their breath. Will they dodge the tax bullet once more? Only time will tell.

The Argentine government has introduced new measures for cryptocurrency holders. Citizens can avoid certain taxes by declaring their digital assets. The move aims to bring crypto into the financial mainstream, and might be seen as a part of wider crypto adoption and overall economy liberalization. The new rules are part of President Javier Milei's Fiscal Package unveiled last Friday. Under amended money laundering laws, Argentines can declare up to $100,000 in Bitcoin and other tokens tax-free. But there's a catch. The exemption only applies to assets held on government-registered platforms. "Virtual assets are considered 'within Argentina' if managed on exchanges registered with the National Securities Commission (CNV)," the law states. This could be a problem for many Argentines, because they use international wallets not registered with the CNV, like popular Exodus or MetaMask. Valuation is another tricky issue. The law requires using market rates from December 31, 2023, or acquisition value if higher. This complicates things for stablecoin holders, who often pay premiums due to currency controls. "Argentina is an anomalous market where many people buy USDT and don't leave room for much else," Tether's chief Paolo Ardoino tweeted recently. Stablecoins are popular as a hedge against inflation. Anyway, Argentina is going pretty rough on those who will not comply. Failing to declare crypto assets could result in criminal charges. At the same time, declaring crypto won't exempt holders from all taxes. It only avoids a "special" levy on undeclared assets. Economy Minister Luis Caputo said assets must stay in the Argentine financial system until December 2025 to qualify. Similar rules apply to foreign currencies. Non-declaration could result in taxes of 5-15% of the dollar value.

Congressman Matt Gaetz has introduced revolutionary legislation to allow federal income tax payments in Bitcoin. If that happens indeed, there's going to be another huge milestone on a path to mass Bitcoin adoption. The bill aims to amend the Internal Revenue Code of 1986. It would require the Treasury Secretary to develop a plan for accepting Bitcoin as payment. The Florida Republican's proposal seeks to modernize the tax payment process. Gaetz believes this move will promote innovation and increase efficiency. He also thinks it will offer more flexibility to American citizens. They will definitely benefit from having new options of paying taxes. "This is a bold step toward a future where digital currencies play a vital role in our financial system," Gaetz told The Daily Wire. He added that this would ensure the U.S. remains at the forefront of technological advancement. The bill outlines very specific requirements for the Treasury Secretary. These include establishing regulations for Bitcoin acceptance and determining when payments are considered received. It also mandates the immediate conversion of Bitcoin to its dollar equivalent. The legislation addresses related non-tax matters, contracts, fees, and liability. It states that the Secretary shall develop a method to allow Bitcoin payment of any tax imposed on an individual. This proposal follows a surge in Bitcoin support among US politicians. Presidential candidates Donald Trump and Robert F. Kennedy Jr. now accept Bitcoin payments. The Biden campaign is reportedly considering accepting cryptocurrency donations. What else could Biden do? He is considered to be Bitcoin public enemy number 1, as of now. Biden Administration officials are expected to attend a Bitcoin roundtable in Washington D.C. Congressman Ro Khanna will host the event. It clearly comes in response to Donald Trump's embrace of Bitcoin. Coinbase CEO Brian Armstrong recently met with senators from both parties. The discussions focused on creating clear rules for the crypto industry. U.S. Congressman Thomas Massie has also shown interest in cryptocurrency. He recently announced plans to introduce a bill to end the Federal Reserve. Massie attributed this decision to reading "The Bitcoin Standard" book.