Bitcoin ETFs could add $30 million to South Africa budget, Luno
According to Marius Reitz, General Manager for Africa and Europe at cryptocurrency exchange Luno, South African authorities could generate additional tax revenue of 540 million rand (over $30 million) by legalizing Bitcoin-based exchange-traded funds (ETFs).
Reitz’s estimates are considered highly conservative, based on minimal returns and the assumption that only 1% of institutional capital in South Africa’s financial market would be allocated to local Bitcoin ETFs.
Still, these figures highlight the untapped potential of digital assets in strengthening the country’s strained budget amid sluggish economic growth and rising debt.
“Digital assets hold enormous potential as a source of increased tax revenue for a country that desperately needs it,” Reitz emphasized. “Currently, regulatory barriers limit the ability to tax crypto gains, but this sector can — and should — contribute to South Africa’s inclusive growth.”
Regulatory uncertainty and burdensome compliance
Debates around digital asset regulation in South Africa intensified after the Gauteng High Court recently ruled that cryptocurrencies are not subject to foreign exchange control rules. The South African Reserve Bank (SARB) has appealed this decision and maintains that crypto is not legal tender.
Meanwhile, the Financial Sector Conduct Authority (FSCA) has introduced licensing requirements for crypto asset service providers under the Financial Advisory and Intermediary Services Act (FAIS), classifying crypto assets as financial products to strengthen consumer protection.
The South African Revenue Service (SARS) also requires individuals to declare all digital assets — including those not converted into fiat currency — in their tax filings. If crypto is converted to fiat, used for purchases, or involved in taxable events, individuals must pay capital gains tax at a rate of 40%, excluding the first 40,000 rand (approx. $2,240).
Another regulatory layer is the Financial Intelligence Centre (FIC), which enforces anti-money laundering and counter-terrorism financing compliance. It recently introduced mandatory registration and reporting obligations for crypto service providers.
As we wrote, UK to tighten tax rules on crypto traders in January 2026
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