South African government aimed at cracking down on tax evasion related to cryptocurrency

The South African government has passed a new law aimed at cracking down on tax evasion related to cryptocurrency and NFT trading. 

The law will require all crypto exchanges operating in South Africa to report suspicious traffic and transactions to the South African Revenue Service. 

This will allow authorities to identify individuals who are making large crypto or NFT profits but failing to pay the appropriate capital gains taxes. Supporters argue the law will help halt the flow of untaxed crypto wealth leaving South Africa. 

However, critics warn it could stifle innovation in the fast-growing crypto and NFT space. The law passed parliament this week and will take effect next month. Authorities plan to monitor crypto traffic closely and prosecute tax evaders to the maximum extent possible under the new law.