Whilst the South African Reserve Bank (SARS) has issued formal warnings regarding the risks associated with trading in Bitcoin, there is no laws currently prohibiting any trading in cryptocurrencies.
However, any earnings from such trades are subject to taxation.
At the moment cryptocurrency trading in South Africa is unregulated, However, the government, like the authorities in many other parts of the world – the EU, for example – are looking to put in place a more stringent regulatory framework around the cyber-banking industry.
In the past five years, the use of Bitcoin and other major cryptocurrencies has become an increasingly favoured means of exchange in many walks of life. For example, many online casinos now accept payment in them and also allow for customers, who have created an account, to make withdrawals in cryptocurrencies as well.
This guide to free spins for South African players listed here gives more details of the major operators who currently accept them.
As to how to go about buying Bitcoin, there are currently a number of options available to those interested.
The first is to buy the cryptocurrency through a reputable exchange. Although there are a number available it is recommended time is spent researching what is available so that an appropriately reliable, secure, and trustworthy exchange is chosen. Check the online reviews for feedback from other clients.
A variation on this is buy the alt-coin using a debit or credit card although this will still need to be done through an exchange.
It is also possible to use a BTM. These function like an ATM but for Bitcoins. For these to work users need to have Bitcoin wallet loaded on their smartphone, which generates a QR code that the BTM reads. BTMs can be sued to deposit funds to buy Bitcoin but do not work the other way – they do not allow people to withdraw the money earned from selling Bitcoin.
As a note of caution, it should be noted that BTMs in South Africa are still very few and far between.
More and more people are getting paid for goods and services provided through Bitcoin. The money owed is paid into a Bitcoin wallet – which can be obtained through a reputable exchange – online. Payment will be virtually instantaneous, and there should be no transaction fees.
Alternatively, people may want to join one of the reputable cryptocurrency platforms which will connect them with people willing to trade Bitcoin privately.
As a word of warning though, there are more than their fair share of Bitcoin scams out there so learn as much as you can before engaging with any of these sites.
Theoretically, also, people can also obtain Bitcoin by mining it – in other words, solving complex mathematical problems. In practice, due to the way that Bitcoin was originally structured, this is becoming increasingly less profitable and requires access to extensive computer power and an almost endless supply of cheap electricity,
In practice, this is beyond the technical capability of most people, and, because so much resource is consumed, could bring a person into conflict with the legal authorities.
