Decrypting Crypto

Blockchain technology is rapidly gaining momentum

- Darren Gorton

Cryptocurrencies are dominating the media. This one has collapsed, that one is on the rise, and a new one is around the corner. Their flavour isn’t quite as piquant today as it was yesterday thanks to fraud, an upsurge in Initial Coin Offerings (ICO) and the challenges that face their legislation and regulation across country and government.

In April, the South African Revenue Service (SARS) announced that it will be treating cryptocurrencies using normal income tax rules. Affected taxpayers will, therefore, be expected to declare cryptocurrency gains or losses as part of their taxable income in the tax year in which they are accrued.

Cryptocurrencies are often confused with block chain, which is a complex, layered technology that provides the backbone of cryptocurrency, but has the potential to deliver much more to enterprise, industry and the consumer.