How to buy Bitcoin in South Africa
Bitcoin is legal in South Africa but not considered legal tender. The South African Reserve Bank classifies it as a digital asset. Approximately 18% of South African internet users under 64 own cryptocurrencies, the highest rate in Africa. By 2024, the government issued 59 licenses for crypto businesses, establishing a regulatory framework to protect investors and promote growth. Bitcoin profits are subject to capital gains tax or income tax, with the top capital gains rate at 18%. Taxpayers must declare gains and losses on tax returns. Bitcoin wallets are essential for storage and transactions, with options including exchange, software, and hardware wallets. Several regulated exchanges are available for purchasing Bitcoin. Understanding regulations, tax obligations, and risks is crucial for navigating Bitcoin investments in South Africa.
