The South African Revenue Service (SARS) has published draft regulations for the Crypto-Asset Reporting Framework (CARF), marking a decisive move toward tighter crypto-asset tax transparency. The public comment period ends 3 October 2025. The regulations are expected to come into force from 1 March 2026 under revised CARF and Common Reporting Standard (CRS) rules.
CARF is an OECD-developed international standard designed to ensure crypto-asset transactions are reported, exchanged, and analysed across jurisdictions to prevent tax evasion and undeclared income. South Africa’s draft rules align it with these global efforts.
What the Draft Regulations Include
- Entities required to report: Crypto-Asset Service Providers (CASPs) — including exchanges, wallet providers, brokers.
- Data to be collected: User identities (including tax jurisdiction, taxpayer identification), details of acquisitions, disposals, transfers, valuations, and related transaction information. Certain stablecoins and NFTs are within scope.
- Due diligence obligations: CASPs will need to verify tax residency and maintain records; self-certification may be used, but must meet reasonableness tests.
- International cooperation: The regulations leverage the Multilateral Competent Authority Agreement (MCAA) under CARF and South Africa’s obligations to exchange information with other jurisdictions.
Timing & Compliance
- The draft regulations were released in mid-September 2025.
- Public comment closes 3 October 2025. Stakeholders (CASPs, individual users, legal / tax experts) have until then to submit feedback.
- The regulations, including revised CRS rules, are proposed to take effect on 1 March 2026.
See more related: South African Crypto Firm NTC Global Trade Liquidated Amid $27M Investor Losses
Implications for South Africa & Africa
- For South African CASPs: Must update systems, compliance functions, KYC/AML processes, user-recording, and tax reporting operations. There will be costs and operational burdens, especially for smaller platforms.
- For crypto users and holders: Transactions that were previously informal could now be exposed. Under-declaration or non-disclosure of crypto income carries risk. Users should prepare by keeping accurate records.
- For the broader African market: South Africa setting domestic law around CARF may raise the bar for other nations. It could affect cross-border compliance and influence policies in Nigeria, Kenya, Ghana, etc., especially for any entity interacting with South African users or jurisdictions.
What Industry Voices Are Saying
- Wiehann Olivier, partner and Fintech / Digital Assets Lead at Forvis Mazars, says this move “reshapes operational and compliance priorities” for CASPs and ushers in an era of accountability.
- Tax Consulting SA warns that the burden of reporting and due diligence will increase significantly, especially in verifying user tax residence and collecting past transaction data.
- Some stakeholders express concern about the timeline—March 2026 may be too soon for smaller CASPs to upgrade systems and comply fully.
What Should Stakeholders Do Now
- CASPs need to review the draft, assess impact on their tech and operations, consult legal/tax advisors, and possibly submit comments before 3 October.
- Crypto holders/users should start organising their crypto transaction histories, including valuation, records of trades, staking or lending income, etc., anticipating future reporting.
- Investors & product builders should factor compliance costs and transparency demands into future business models.
