The South African government is taking a firmer stance on cryptocurrency trading. Tax authorities, SARS, are issuing tax notices and clarifying regulations. It's believed they're using artificial intelligence to identify traders who aren't complying with tax laws. Meanwhile, the central bank has updated its rules for buying crypto. Individuals can invest a limited amount, but companies aren't allowed.

SARS has stepped up its focus on crypto traders. The agency is issuing tax notices and clarifying exchange control regulations. They're using information from crypto exchanges to do this. This is a big step in SARS's efforts to make sure people pay their taxes on crypto. Recently, South Africa decided to officially recognize digital asset exchanges as financial institutions. This makes South Africa one of the first African countries to do this.

The Financial Sector Conduct Authority (FSCA) has given licenses to many digital asset firms. These licensed companies must share certain information with SARS. If they don't, it's considered a crime under South African tax law. Tax experts say SARS might be using artificial intelligence (AI) to find traders who aren't complying with the tax laws.

The South African Reserve Bank (SARB) has also clarified its rules on buying crypto assets. Individuals can use their single discretionary allowance or foreign capital allowance to buy crypto, but companies can't invest in them through foreign direct investment dispensation. The SARB has also said that cross-border or foreign exchange transfers just to buy crypto aren't allowed under exchange control regulations.

The increased scrutiny from SARS and SARB means a new era of accountability and transparency. Traders must now follow these more complex rules to avoid penalties. Experts warn that the days of operating without oversight are over, and traders must adapt to these changes to protect their financial interests.