SARS Turns Up the Heat on Crypto Traders and There’s No Hiding Anymore

New global reporting rules mean South Africans trading in crypto are firmly in the taxman’s crosshairs

If you’re a South African who dabbles in crypto, whether you’re a weekend trader, a long-term hodler, or someone quietly flipping tokens offshore, the days of thinking your digital assets live outside SARS’ reach are officially over.

The revenue service is sharpening its teeth, and this time, the bite is global.

SARS’ latest crackdown is tied to two major developments: South Africa’s adoption of the OECD’s Crypto-Asset Reporting Framework (CARF) and an upgraded Common Reporting Standard (CRS). Together, they form one of the world’s toughest international tax transparency regimes and crypto is now front and centre.

The move aligns South Africa with a global push to close tax loopholes created by fast-growing digital asset markets. Tax experts say this isn’t just another compliance update, it’s a full-scale shift in how governments track, trace, and tax crypto wealth.

A New Era: Automatic Information Sharing

For years, many South Africans believed crypto offered a grey zone where SARS simply didn’t have visibility. That illusion is about to vanish.

The CARF and revised CRS, kicking in on 1 March 2026, create an environment where financial institutions and crypto service providers must automatically share data with tax authorities. That includes:

• User identities

• Crypto transactions

• Wallet activity

• Tax residency confirmations

• Five-year documentation trails

If a crypto platform trades on your behalf, holds your tokens, or helps you swap USDT for Bitcoin? They’re now obligated to report.

Tax Consulting South Africa put it bluntly:

“Any evasive tax strategies will be unravelled by SARS.”

In other words, the net is closing and it’s stitched with international cooperation.

South Africans React: “So, SARS Knows About My Solana Bag?”

On social media, crypto communities were buzzing. Some joked darkly about “SARS minting a new token: PAYEcoin”. Others called it overdue regulation following years of unmonitored crypto profits.

But beneath the humour sits a deeper concern. South Africa has one of the highest crypto adoption rates in Africa, particularly among young professionals and township-based digital entrepreneurs who use platforms like Luno, VALR and Binance.

For many, crypto wasn’t just an asset it was a side hustle, a lifeline, or an alternative in a shaky job market. Now, SARS wants detailed records of everything from your first Bitcoin buy to the obscure altcoin you traded at 2am.

Why the Global Crackdown Matters

Crypto has long been a magnet for offshore tax evasion and cross-border money movement. South Africa’s move to adopt CARF pulls the curtain open on activities that were once easy to obscure, especially for users storing assets overseas.

SARS will now rely heavily on automatic cross-border data exchange, meaning foreign exchanges and banks will report to SARS the same way local ones do.

Tax experts warn that failing to disclose crypto income, even unrealised gains or on-platform activity could soon trigger:

• Penalties

• Frozen assets

• Charges for tax evasion

• Suspended accounts with service providers

Crypto is no longer invisible. It’s on the spreadsheet.

What Will Change in 2026?

1. Crypto companies must verify tax residency

You’ll be asked to confirm where you’re tax-resident and platforms must keep proof for at least five years.

2. Strict due diligence

Service providers will have to identify “Controlling Persons” behind accounts, including those using business entities or offshore structures.

3. More detailed transaction reporting

This includes cross-platform transfers and trades that never touch your South African bank account.

4. Broader financial oversight under CRS

Certain electronic money products and even Central Bank Digital Currencies (CBDCs) fall under the revised CRS umbrella.

From March 2026, local banks and financial institutions must comply with new reporting requirements that cover traditional and digital assets.

The Backstory: SARS Has Been Preparing for This Since 2020

Crypto traders often assume the crackdown came out of nowhere, but SARS has been tightening its grip on offshore assets for years.

Since 2020, taxpayers have been receiving offshore asset disclosure notices, with SARS probing foreign bank accounts, trusts, and crypto stored abroad.

With CARF and the new CRS, the tools SARS needed to close the gap are finally in place. Crypto-related non-compliance, especially failure to declare profits, is now among the easiest targets for the taxman.

What Traders Need to Do Now

Tax specialists recommend treating crypto the way you’d treat traditional investments:

• Keep detailed trading records (dates, values, wallet addresses)

• Declare ALL income, including crypto-to-crypto trading gains

• Understand foreign exchange controls when moving funds offshore

• Work with authorised dealers, as banks may escalate large or complex transfers to SARB

And the big one:
Assume SARS knows more than you think.

As Tax Consulting put it:

“Tax compliance starts with assuming liability for all income received and maintaining accurate financial records.”

For many South Africans, that means finally getting organised or getting help.

A New Tax Landscape Is Coming

Crypto once lived in a regulatory vacuum. It’s now becoming one of the most heavily monitored asset classes in the world.

For honest taxpayers, this may bring the clarity they’ve been waiting for. For those hoping to fly under the radar, March 2026 marks the end of an era.

Either way, SARS is no longer asking politely. It’s coming and it’s coming hard.

{Source: BusinessTech}

Follow Joburg ETC on Facebook, Twitter , TikTok and Instagram

For more News in Johannesburg, visit joburgetc.com