The South African Revenue Service (SARS) has published draft Crypto-Asset Reporting Framework (CARF) regulations for public comment, marking a major step in tightening oversight of digital assets. This comes after thousands of crypto holders recently received compliance notices.
“South Africa’s adoption of this framework demonstrates its commitment to international standards of financial transparency and digital asset regulation,” said Wiehann Olivier, partner at Forvis Mazars.
Developed by the OECD, CARF seeks to address the growing role of crypto-assets in cross-border transactions and curb tax evasion.
According to Olivier, the new framework will significantly reshape how Crypto-Asset Service Providers (CASPs)—including exchanges, brokers, and wallet providers—operate. They will be required to collect and report detailed data on acquisitions, disposals, transfers, and valuations. The scope covers not only cryptocurrencies but also stablecoins and certain NFTs.
“CASPs are already subject to FIC and FATF requirements, but CARF introduces tax-specific obligations, such as verifying tax residency and identifying reportable persons,” Olivier explained.
He warned that non-compliance carries substantial reputational and financial risks:
“SARS has made it clear that penalties and enforcement under the Tax Administration Act will follow. CASPs that fail to adapt may face market exclusion or consolidation.”
For taxpayers, the framework ends the long-standing uncertainty surrounding crypto taxation. With SARS gaining access to transaction-level data, underreporting is riskier than ever. Olivier advised holders to reconcile historical transactions, calculate gains, and account for staking, lending, and other crypto activities.
“The days of informal recordkeeping are over. Crypto-assets must now be treated with the same rigour as traditional financial instruments,” he said.
Taxpayers who have omitted crypto-related income can use SARS’ Voluntary Disclosure Programme (VDP) to regularise their affairs and potentially avoid severe penalties.
Crypto ownership vs taxpayer base
A 2022 study by Triple A estimated that 5.8 million South Africans (9.44% of the population) own crypto. The FSCA cited the same report, projecting that 43% of the population will use crypto by 2030.
Meanwhile, National Treasury figures show that 7.89 million taxpayers earn above the R95,750 exemption threshold, with another 6.55 million registered but earning below it. This suggests that up to 73.5% of taxpayers may hold crypto—or that many holders fall below taxable income levels.
“Crypto is no longer a fringe asset—it faces the same scrutiny as traditional finance,” Olivier said, adding that CARF represents more than compliance:
“It’s a cultural shift. We expect stronger demand for tax-efficient investment structures, better reporting, and closer integration between crypto platforms and banks.”
Olivier concluded that the regulations are a defining moment for South Africa’s crypto sector:
“CARF is a catalyst for modernisation, transparency, and trust in the ecosystem. The challenge is not whether stakeholders will comply, but how fast they adapt.”
Public comments on the draft close on 3 October, leaving limited time for stakeholders to prepare.
