The South African tax authorities are reviewing the tax matters of cryptocurrency traders

ChainCatcher news, according to News.bitcoin, South African cryptocurrency traders have begun receiving notifications from the South African Revenue Service (SARS) indicating that their tax affairs are under review.

The tax authority is collecting information from various cryptocurrency exchanges to assess compliance. Traders who fail to provide the requested information may face criminal charges under the Tax Administration Act. The South African Revenue Service may also investigate cases of unreported cryptocurrency ownership in the past.

The South African Revenue Service has not yet provided clear guidance on whether cryptocurrency trading is considered capital gains or income. Therefore, accurately recording gains and losses from local and foreign cryptocurrency exchanges remains challenging.