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Cryptocurrencies have long been popular in South Africa, as its residents, like the rest of the world, have become invested in this ostensibly easy-to-profit economy. Because of the widespread popularity and use of crypto-related finance, earnings, and transactions in the country, South Africa’s government deemed it necessary to enact a slew of legislation and rules governing these crypto services. It should be noted that these laws are not as stringent as one might expect. In fact, they greatly assist South African-based crypto investors in being better protected from market volatility.
South African crypto regulations are being imposed on crypto services as the Financial Services Conduct Authority (FSCA) continues to review and develop regulations for this online industry.
- FSCA and other organizations work on various aspects of the crypto industry, with a focus on anti-money laundering, counter-terrorism financing frameworks, financial flow monitoring, and the application of financial sector laws.
- Only a few of the laws related to the above topics are currently in effect, but it is expected that regulations under these and several others, such as crypto holdings declaration and crypto services licensing, will be implemented this year (2022).
Similarly, the South African Revenue Service (SARS) states that any crypto-earnings and assets are subject to normal income tax rules. As a result, South African taxpayers are required to report and submit any cryptocurrency gains or losses, as well as pay the appropriate taxes based on their taxable income.
Apart from these few implemented regulations and under-review legislation, South Africa can be considered a crypto-friendly country. As a result, as a beginner or a regular investor, you should have no trouble getting started and maintaining a crypto investing job as long as you know how to get started and how to keep it going.
Recommended Exchanges to Purchase Crypto South African Customers
Bitcoin Purchase and Use in South Africa
As previously stated, South Africa is not overly restrictive with regard to crypto services and crypto investments, so it would be simple to buy, trade, and sell cryptocurrencies such as Bitcoin in the country. So, if you already know how the crypto market works, your responsibilities as a future crypto asset holder, and have a budget, let’s get started.
This guide will explain how to buy Bitcoin in South Africa. However, if you intend to invest in other crypto coins, these methods will work similarly. Bitcoin can be purchased in two ways:
- through Bitcoin ATMs
- through a Crypto Exchange Platform
Bitcoin (BTC) ATMs function similarly to regular automated teller machines, but instead of cash, you can use them to buy or sell Bitcoins (and other popular coins that are only available at a few BTC ATMs). However, in order for it to work for you, you must already have a crypto wallet. There are numerous Bitcoin ATMs located throughout the country, and they are completely accessible and simple to use, even for a beginner.
To purchase cryptocurrency through a Bitcoin ATM, simply create a crypto wallet, visit one of the several BTC ATMs located throughout South Africa, and follow these simple instructions:
Enter your phone number to confirm your identity.
Scan the QR code from your cryptocurrency wallet on the machine. This can be a Bitcoin public address from your paper wallet, an app, or an address from any cryptocurrency exchange you own.
Insert your South African Rand (ZAR) into the machine. This will serve as payment for the cryptocurrency you are purchasing.
Confirm the transaction and the amount.
Expect the specified amount of Bitcoin (BTC) or cryptocurrency to appear in your crypto wallet.
The second and most popular and convenient way to purchase Bitcoin or any other cryptocurrency is through a cryptocurrency exchange platform. Crypto exchanges are internet platforms that enable their users to buy, sell, and trade cryptocurrency as well as provide other crypto services such as various types of trading and more to their clients using any internet electronic device. Due to their non-restrictive regulations, South African cryptocurrency exchanges such as CoinSpot, Swyftx, and eToro are all popular sites to use to buy crypto assets such as Bitcoin online.
To purchase Bitcoin via a crypto exchange platform, go to any reputable crypto exchange platform and follow these simple steps:
Go to the cryptocurrency exchange's website and register and verify your account. You may be required to provide some personal information as well as a valid identification card. After that's completed, you will have access to all the crypto services the exchange provides.
Deposit fiat currency into your crypto exchange account, or link your bank account, e-wallet, or debit card. This will be used to pay for any cryptocurrencies you have in your account.
Go to the market and look for the cryptocurrency you want to buy, such as Bitcoin (BTC). Choose it and then click Buy.
Provide the necessary information, such as the purchase amount and payment method. Examine and approve the transaction. Then you're finished.
Unfortunately, Bitcoin and other cryptocurrencies are not considered legal tender. As a result, you cannot simply use cryptocurrency to pay for goods and services. However, there are some businesses that allow this, though they are highly unregulated by the South African finance ministry. Finally, any purchase, trade, or sale of cryptocurrency in South Africa is unregulated, posing significant risks.
Does Coinbase operate in South Africa?
Coinbase is available in South Africa, as well as 100 other countries around the world, for investors interested in using this international crypto exchange platform. Simply go to their website, create an account, and verify it to get started. This grants you access to their extensive crypto services, robust security features, and incredibly low fees.
Can I Buy Ethereum with a Credit Card in South Africa?
Ethereum (ETH) is a popular crypto coin alongside Bitcoin, but it consistently trails BTC in the charts. So it’s no surprise that people want to invest in Ethereum. Some Bitcoin ATMs in South Africa allow you to buy and sell Ethereum, but the most convenient way to buy ETH is through cryptocurrency exchanges.
If you can use your credit card to buy Ethereum or other cryptocurrencies, it is highly dependent on the crypto exchange platform and the company. It is difficult to find a crypto exchange that accepts credit cards, but Coinmama and CEX.io are large, trusted exchanges that do accept credit card purchases if you use Visa or Mastercard.
Frequently Asked Questions
You can easily convert Bitcoin from any Bitcoin ATM or crypto exchange platform into fiat currency (real money). To use Bitcoin ATMs, simply sign in to your account and withdraw money from one of the many teller machines located throughout the country. You can withdraw from crypto exchange platforms by going to the crypto exchange site, logging in to your account, and then starting the withdrawal process.
There are currently 18 Bitcoin ATMs in operation throughout the country, primarily in Pretoria, Cape Town, Johannesburg, and Nelspruit. Visit Coin ATM Radar to see a map of Bitcoin ATMs in their exact location.