Study on the method of tax service in South Africa to track bitcoin transactions

Study on the method of tax service in South Africa to track bitcoin transactions


Encryption of money market regulators, government and tax personnel on how to keep up with the rapid growth of confusion. In the market there is a large gray area, in this market, usually the incident will be handled.

In order to achieve this goal, to help the South African tax authorities – the South African tax authorities are seeking top technology companies from around the world to try to track bitcoin transactions.

The South African Department of revenue (SARS) this attempt may open a worm, because of privacy will be deep into the transparent and anonymous bitcoin transactions.

How is it now

According to reports, in September this year, only 802 people in the United States for the bitcoin income tax, because the IRS almost have no alternative but requires only the honest people.

This approach extends to most countries, because it still has no precedent to force people to disclose their privacy transactions.

Banks are required to provide “SARS” and other tax information institutions in other countries, and provide customers with investment information to verify, but in an encrypted environment is the lack of such information.

Tough fight

With more and more people into the encryption market, which makes the revenue service is in a tense state.

“Executive director RandallCarolissen SARS” organization admitted that they are looking for tracking bitcoin trading options.

“As you can imagine, block chain technology is very difficult. We are in talks with some of the top technology companies in the world, these companies are doing similar work for Canada and the UK, we hope to get such a technology.”

“Black handcuffs”

The real problem lies in the protection of bitcoin is the right of privacy, any organizations are difficult to break through the rights in law. Bitcoin transactions are transparent, anonymous, but this is not entirely anonymous.

There is no information about how to monitor the distributed system transactions precedent, tax services and other regulatory agencies will need to come up with a solution.

The problem is due to the dispersion of bitcoin, no one can find other currencies like bitcoin. The transaction is open in the block chain, but when it comes to put these transactions tied in one person and are taxed, regulators are still an opaque field.

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